The major, overall argument against the "marginal principle of retained earnings" is

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The major argument against the "marginal principle of retained earnings" is that it fails to consider stockholder preferences. Stockholders have varying preferences and objectives, and the principle assumes that all stockholders have the same investment goals and are indifferent to retained earnings versus dividend payouts. As a result, the principle may not adequately align with stockholder preferences and may not maximize shareholder value.

The Major, Overall Argument Against the "Marginal Principle of Retained