Difference between revisions of "Retained earnings breakpoint"
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Revision as of 03:12, 9 November 2019
Retained earnings breakpoint (hereinafter, the Indicator) is the indicator of capital raised beyond which new common stock must be issued. The Indicator represents a breakpoint for retained earnings.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Retained earnings breakpoint. The amount of capital raised beyond which new common stock must be issued.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
