dcfox83

sevago00 Wrote:
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> Here's another way to think of it:
>
> The company can do 2 things with the money they
> make.
> (1) give it away by dividends
> (2) keep it in retained earnings.
>
> If they keep it, they can reinvest it and make
> more money instead of borrowing money.

Only if they are earning more than the current ROE on new projects, otherwise, Ide rather take the div??