Retained earnings breakpoint
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Retained earnings breakpoint is the amount of capital raised beyond which new common stock must be issued.
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.
