Cost of retained earnings
Cost of retained earnings, rs, is the cost associated with retained earnings.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Cost of retained earnings, rs. The rate of return required by stockholders on a firm's common stock.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
