What is the cost of retained earnings?
Could you please explain what the cost of retained earnings entails? I'm curious to understand how this financial concept relates to a company's decision-making process regarding the distribution of profits. Is it a direct cost that can be easily quantified, or does it encompass various factors that contribute to the overall value of a company's retained earnings? Additionally, how does the cost of retained earnings factor into a company's financial planning and strategy, and what implications does it have for investors and stakeholders?