Part 1[4]
Explain two likely effects of DTY’s Board of Directors’ choice to keep retained earnings at a high level.
Business 9609 · AS & A Level · Sources of finance
Sources of finance — practice question
Worked solution & mark scheme
This 4-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Full credit (4 marks): Contextual explanation of two effects of a high level of retained earnings (for example, shareholders may sell shares, which would push the share price down; retained profits can finance expansion and reduce the need for costly external finance).” …
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