True/False
Retained earnings represent an internal source of funds that is raised without the payment of interest or cost to the firm's stockholders.
"Opportunity cost" must be considered since earnings could be issued to shareholders in the form of dividends.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q2: A firm in a stable industry should
Q4: Debreu Beverages has an optimal capital structure
Q4: The discount rate that equates a future
Q8: Oak Enterprises has a beta of 1.2,
Q10: The coupon rate on an issue of
Q52: A firm's debt-to-equity ratio varies at times
Q53: Tobin's Barbeque has a bank loan at
Q66: The after-tax cost of debt will almost
Q72: Financial capital does not include<br>A) stocks.<br>B) bonds.<br>C)
Q76: A firm in a cyclical industry should