Business Studies, asked by singhpreeti6042, 1 year ago

What is opporunity cost and how it is taken as a critism for retain earning?

Answers

Answered by SnehaG

0

the opporunity cost is integrally a numeral chax and it is taken as a critism for retain earning by entrepreneurs

Answered by Anonymous

0

hey here is your answer

Retained earnings belong to the existing common stockholders. If the funds are paid out instead of reinvested, the stockholders could earn a return on them. Thus, we say retaining funds for reinvestment carries an opportunity cost. ... The marginal cost of capital is the cost of incremental funds.

hope you understand

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