Advantages and disadvantages<br>Advantages: Retained earnings give priority to the needs of investment, which helps to reduce the cost of capital investment, maintain the best capital structure, and achieve the long-term maximization of enterprise value.<br>Disadvantages:<br>Dividend payments fluctuate with fluctuations in investment opportunities and profitability<br>Adverse to Investors in Arrangement of Income and Expenditure<br>Not conducive to the company to establish a good image<br>
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