If a firm that chooses to use all of its corporate earnings as dividends, then:

Name: If a firm that chooses to use all of its corporate earnings as dividends, then:
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Question

Quizplus · Accepted Answer

Retained earnings refer to the earnings that a company decides to keep for investing in future growth opportunities. If a company chooses to distribute all of its earnings as dividends, then it has no retained earnings. However, this does not mean that taxes paid, sales, or profits are necessarily zero.

If a Firm That Chooses to Use All of Its