Generally,a firm that maintains a low level of retained earnings will do which of the following?

A) maximize its share price in the long run
B) minimize its share price in the long run
C) maximize its market risk in the long run
D) minimize its market risk in the long run

Retained Earnings

Earnings accumulated by a company thus far, minus any shareholder dividends or distributions already issued.

Share Price

The current price at which a single share of a company can be bought or sold in the market.

Market Risk

The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.