For example, shareholders of a "growth stock", expect that the company will, almost by definition, retain earnings so as to fund growth internally.
Investment management firms need very little capital and do not need to retain earnings.
The investments under the Manila concessions are financed through debt, equity and retained earnings.
The latter represented a return on total equity employed plus previously retained earnings of 18.2%.
In reality, companies often retain earnings and invest them internally rather than distribute profits to their shareholders.
Why do companies retain earnings, if they reduce shareholder choice and lead to investment distortions?
So retained earnings, the earnings that were kept in the business, look far better.
But by retaining earnings at a time when it was not growing in asset size, Golden West improved its underlying financial strength.
Franchise: 6.25% per $1000 of stated capital retained earnings.
The company's retained earnings, the amount not paid in dividends, rebounded.