Financial mgt

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08 August 2014 meaning and formula of retain earning

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08 August 2014 The percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders' equity on the balance sheet.

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08 August 2014 + Beginning retained earnings
+ Net income during the period
- Dividends paid
= Ending retained earnings


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