Why doesn't the solutuon list a problem with relying on retained profits for medium and long term finance as the fact that shareholders may demand immediate release of retained earnings as dividends, which could cause finance problems for the company? The solution states two completley obvious points for one mark each, i can not understand this.
And part two of this question
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All that writing and explanation for 4 marks? Seems a bit ridiculous
Last edited by a moderator: Aug 10, 2009
