Should a firm with high retained earnings have a lower cost of equity?
What will be an ideal response?
Answer: Cost of equity is the return that equity holders expect from a firm and is not directly related to the firm's retained earnings.
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The objective of the audit of GAAP-based financial statements is to
a. Make suggestions as to the form or content of the financial statements or to draft them in whole or in part b. Express an opinion on the fairness with which the statements present financial position, results of operations, and cash flows in accordance with generally accepted accounting principles c. Ensure adoption of sound accounting policies and the establishment and maintenance of internal control d. Express an opinion on the accuracy with which the statements present financial position, results of operations, and cash flows in accordance with generally accepted accounting principles
There is no uniform code for
A. personal property. B. commercial paper. C. real property. D. all of these.