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The marginal principle of retained earnings means that each potential project to be financed by retained earnings must a) provide a higher rate of return
The marginal principle of retained earnings means that each potential project to be financed by retained earnings must a) provide a higher rate of return than the stockholders can achieve after paying taxes on the distributed dividends. b) yield a return equal to or greater than the marginal cost of capital. d) have an internal rate of return greater than the corporate growth rate of dividends.
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