Problem in computation of retained earnings, Financial Management

Q. Problem in computation of retained earnings ?

Problem in computation of retained earnings: it is sometimes argued that retained earning do not involve any costs. But in the reality it is the opportunity costs of dividend foregone by its shareholders. Since different shareholders may have the different opportunity for investing their dividends. It becomes very difficult to compute the cost of the retained earnings.

Posted Date: 6/20/2013 3:36:58 AM | Location : United States

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