Which of the following is true about retained earningsa, Ask an Expert

Economics

Which of the following is true about retained earnings?

A) they are considered to cost the same as equity capital when used to finance a project

B) they are considered to be essentially free to the company for investment in projects since it is using its own money

C) retained earnings are always paid out in dividends to stockholders.

D) retained earnings are cheaper to use for funding projects than bonds but more expensive than equity.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91388992

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