What are reasons for returning a portion of retained earning
Course:- Financial Management
Reference No.:- EM13886026

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Instructions are as followed: "Companies can return retained earnings to investors or let it accumulate within the company.

What are some circumst ances / reasons for returning a portion of the retained earnings, and what are some circumstances / reasons for letting it accumulate? Relate your comments to how investors view such options.

Please provide the reference used on a reference page and please cite on which paragraph the information and or idea was used within the document.


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The term retained earning mean portion of profit accumulated by companies every year which can be distributed as dividend to shareholder or can be retain for future growth of the business. It reflect dividend history of the company, if retain earning of the company is more it means it’s not have good dividend history and vice versa.

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