Cost of retained earnings

Cost of retained earnings
  The residual of an entity's earnings over expenditures, including taxes and dividends, that are reinvested in its business. The cost of these funds is always lower than the cost of new equity capital, due to taxes and transactions costs. Therefore, the cost of retained earnings is the yield that retained earnings accrue upon reinvestment.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Statement of retained earnings — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Appropriated Retained Earnings — Any unappropriated retained earnings that are specifically not to be used for dividend payments. Appropriated retained earnings can be used for many purposes, such as improving infrastructure, R D or marketing. They are not passed on directly to… …   Investment dictionary

  • Cost of capital — The cost of capital is a term used in the field of financial investment to refer to the cost of a company s funds (both debt and equity), or, from an investor s point of view the shareholder s required return on a portfolio of all the company s… …   Wikipedia

  • cost of capital — The rate of *return a corporation must pay for the *capital used to finance its activities. As capital in its widest sense is drawn from various forms of *debt and *equity (*common stock, *preferred stock, and *retained earnings), the cost of… …   Auditor's dictionary

  • Weighted Average Cost of Equity - WACE — A way to calculate the cost of a company s equity that gives different weight to different aspects of the equities. Instead of lumping retained earnings, common stock, and preferred stock together, WACE provides a more accurate idea of a… …   Investment dictionary

  • Earnings before interest, taxes, depreciation and amortization — (EBITDA) is a non GAAP metric that can be used to evaluate a company s profitability.::EBITDA = Operating Revenue – Operating Expenses + Other RevenueIts name comes from the fact that Operating Expenses do not include interest, taxes, or… …   Wikipedia

  • Historical cost — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Dividend policy — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • KRE — Kobe Rubber Exchange (Business » Stock Exchange) ** Kirundo, Burundi (Regional » Airport Codes) * Cost of Retained Earnings (Business » General) …   Abbreviations dictionary

  • accounting — /euh kown ting/, n. 1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”