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    Dhillski1's Avatar
    Dhillski1 Posts: 1, Reputation: 1
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    #1

    May 10, 2010, 09:01 PM
    Retained earnings
    In part a we assumed that Nealon would have sufficient retained earnings such that it would not need to sell additional common stock to finance its new investments. Consider the situation now, when Nealon's retained earnings anticipated for the coming year are expected to fall short of the equity requirement of 47 percent of new capital raised.
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    May 11, 2010, 05:01 AM

    1) The assumption was wrong in the first place.
    2) Change of direction is required.
    3) Facts and figures need to be spelt out.
    4) Accounting is NOT an exact science.
    5) Circumstances change , one needs to keep up with the changes.
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