<P> The decision of whether a corporation should retain net income or have it paid out as dividends depends on several factors including, but not limited to: </P> <Ul> <Li> Tax treatment of dividends, and </Li> <Li> Funds required for reinvestment in the corporation (called retention). </Li> </Ul> <Li> Tax treatment of dividends, and </Li> <Li> Funds required for reinvestment in the corporation (called retention). </Li>

Who owns retained earnings of a public firm