FUND.OF FINANCIAL MGMT:CONCISE-MINDTAP
FUND.OF FINANCIAL MGMT:CONCISE-MINDTAP
10th Edition
ISBN: 9781337910972
Author: Brigham
Publisher: CENGAGE L
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Chapter 14, Problem 2Q
Summary Introduction

To explain: Whether it is totally irrational for a firm to sell a new issue stock and to pay cash dividends during a year.

Introduction:

Retained Earnings: A company has kept a certain amount of its net earnings to reinvest into the business or to pay its debt instead of paying it as a dividend is known as the retained earnings. It is recorded under the shareholder’s equity in balance sheet.

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