Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

If a firm cannot invest retained earnings to earn a rate of return the required rate of return on retained earnings, it should return those funds to its stockholders

Sagot :

Parrain

As regards this statement on funds being returned to stockholders, this is TRUE.

Why is this statement true?

In theory, the reason why stockholders leave retained earnings with the company they invested in, is because the stockholders cannot find other ways to make the required return.

If the firm is therefore unable to make this required return, they will have to return it to the shareholders who will then find a way to invest in other things to make their required returns.

Find out more on required returns at https://brainly.com/question/15049289.

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.