3 years ago

The marginal principle of retained earnings means that each potential project to be financed by retained earnings must:

Business

1 answer:

Sedaia [141]3 years ago

3 0

Answer:

The correct answer is D

Explanation:

Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.

So, the marginal principle of retained earnings would be when it will provide the higher rate of return than the shareholders who could achieve after paying taxes on the dividends.

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