The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments. Introduction: Retained Earnings: Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

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Answer 1

Question

Chapter 18, Problem 1DQ

Summary Introduction

To explain: The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments.

Introduction:

Retained Earnings:

Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

Expert Solution & Answer

Answer to Problem 1DQ

The marginal principle of retained earnings states that a company should perform an analysis of whether the company or stockholders earn more on the funds related to retained earnings.

Explanation of Solution

Explanation:

As per the marginal principle of retained earnings, the earnings that the stockholders would earn on other investments should also be considered. According to this principle, a company should analyze the earnings of company as well as shareholders to see who earns most on the funds associated with retained earnings.

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Students have asked these similar questions

Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or paid out as dividends Investors could buy other securities, earn a return Neither Either

What rate of return can stockholders expect to receive on retained earnings?

Which of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of these

Answer 2

Question

Chapter 18, Problem 1DQ

Summary Introduction

To explain: The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments.

Introduction:

Retained Earnings:

Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

Expert Solution & Answer

Answer to Problem 1DQ

The marginal principle of retained earnings states that a company should perform an analysis of whether the company or stockholders earn more on the funds related to retained earnings.

Explanation of Solution

Explanation:

As per the marginal principle of retained earnings, the earnings that the stockholders would earn on other investments should also be considered. According to this principle, a company should analyze the earnings of company as well as shareholders to see who earns most on the funds associated with retained earnings.

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Answer 3

Question

Chapter 18, Problem 1DQ

Summary Introduction

To explain: The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments.

Introduction:

Retained Earnings:

Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

Expert Solution & Answer

Answer to Problem 1DQ

The marginal principle of retained earnings states that a company should perform an analysis of whether the company or stockholders earn more on the funds related to retained earnings.

Explanation of Solution

Explanation:

As per the marginal principle of retained earnings, the earnings that the stockholders would earn on other investments should also be considered. According to this principle, a company should analyze the earnings of company as well as shareholders to see who earns most on the funds associated with retained earnings.

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Answer 4

Question

Chapter 18, Problem 1DQ

Summary Introduction

To explain: The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments.

Introduction:

Retained Earnings:

Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

Expert Solution & Answer

Answer to Problem 1DQ

The marginal principle of retained earnings states that a company should perform an analysis of whether the company or stockholders earn more on the funds related to retained earnings.

Explanation of Solution

Explanation:

As per the marginal principle of retained earnings, the earnings that the stockholders would earn on other investments should also be considered. According to this principle, a company should analyze the earnings of company as well as shareholders to see who earns most on the funds associated with retained earnings.

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Answer 5

Chapter 18, Problem 1DQ

Summary Introduction

To explain: The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments.

Introduction:

Retained Earnings:

Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

Expert Solution & Answer

Answer to Problem 1DQ

The marginal principle of retained earnings states that a company should perform an analysis of whether the company or stockholders earn more on the funds related to retained earnings.

Explanation of Solution

Explanation:

As per the marginal principle of retained earnings, the earnings that the stockholders would earn on other investments should also be considered. According to this principle, a company should analyze the earnings of company as well as shareholders to see who earns most on the funds associated with retained earnings.

Answer 6

Chapter 18, Problem 1DQ

Summary Introduction

To explain: The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments.

Introduction:

Retained Earnings:

Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

Expert Solution & Answer

Answer to Problem 1DQ

The marginal principle of retained earnings states that a company should perform an analysis of whether the company or stockholders earn more on the funds related to retained earnings.

Explanation of Solution

Explanation:

As per the marginal principle of retained earnings, the earnings that the stockholders would earn on other investments should also be considered. According to this principle, a company should analyze the earnings of company as well as shareholders to see who earns most on the funds associated with retained earnings.

Answer 7

Chapter 18, Problem 1DQ

Summary Introduction

To explain: The relation shared between the marginal principle of retained earnings and the returns that a shareholder might make on other investments.

Introduction:

Retained Earnings:

Retained earnings is a portion of the profits earned by a business not disbursed by the company as dividend to its shareholders so that it can be used for future investments.

Answer 8

Expert Solution & Answer

Answer to Problem 1DQ

The marginal principle of retained earnings states that a company should perform an analysis of whether the company or stockholders earn more on the funds related to retained earnings.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Explanation:

As per the marginal principle of retained earnings, the earnings that the stockholders would earn on other investments should also be considered. According to this principle, a company should analyze the earnings of company as well as shareholders to see who earns most on the funds associated with retained earnings.

Answer 12

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

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Answer to Problem 1DQ

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