After enjoying increased sales and profits of several popular products,Braggs & Stritton plans to expand their production facilities.The firm,a well-known producer of lawn care products,prefers financing this project with a funding source that avoids interest and dividend payments as well as underwriting costs.Which of the following best meets the needs of Braggs & Stritton?

Question

Quizplus · Accepted Answer

Retained earnings refer to the profits that a company has kept rather than paid out as dividends. Braggs & Stritton can use their retained earnings to finance their expansion project without incurring interest or dividend payments or underwriting costs.

After Enjoying Increased Sales and Profits of Several Popular Products,Braggs