Which of the Following Is Correct When Considering Retained Profits

Which of the following is correct when considering retained profits as a form of financing?

A) Financing is immediate as retained profits are already held by the company.
B) Companies can only pay out 50% of their retained profits on dividends so there is always money available.
C) Businesses either pay out all their retained earnings on dividends or they pay none at all.
D) All of the above statements are correct.

Correct Answer:

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