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Statement I:The cost of retained earnings is the opportunity cost of dividends forgone by shareholders.Statement II:The opportunity cost of reserve & surplus may be considered as their cost, which is equivalent to the income that would otherwise earn by placing these funds in alternative investment.Select the correct answer from the options given below:

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Statement I:<br />The cost of retained earnings is the opportunity cost of dividends forgone by shareholders.<br />Statement II:<br />The opportunity cost of reserve & surplus may be considered as their cost, which is equivalent to the income that would otherwise earn by placing these funds in alternative investment.<br />Select the correct answer from the options given below:






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