$\beta _p$ = $\frac{{\beta equity X E}}{D + E}$ + $\frac{{\beta debt X D}}{D + E}$.

Retained earning refers o the accumulated net income of a company or a business organization.Retained earnings does not involve any explicit cost in the form of interest, dividend and floating cost.

Retained earning refers o the accumulated net income of a company or a business organization.The opportunity cost associated with retained earning is not recognized by many firms. The opportunity cost refers to the cost of letting go the next best alternative use.

Excessive ploughing-back may cause dissatisfaction among the shareholders as they would get lower dividends. Excessive ploughing back of profits will result in over capitalization which will in turn lead to decrease in ROI.

A company generally does not distribute all its earnings among the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as retained earnings. It is a source of internal financing or self-financing or ‘ploughing-back of profits’.

Opportunity cost to the firm is the more appropriate for cost of retained earnings. The opportunity cost of the firm  includes explicit cost as well as implicit cost.

An individual can become a part of the company if the individual purchases the companies debt- this is a false statement as debt is known as borrowed fund of the company and the person who purchases companies debt are known as the borrowers.

The preference shares are the ones which preferential rights like prior payment of dividend and return of capital.The dividend also remains the same for every financial year and the company has a fixed liability to pay the interest and the amount of profits cannot define the payment of interest on preference shares.

A part of the net profits that are usually kept for use in the future is termed as retained earnings. Retained earnings are uncertain sources of funds as the profits of a business are fluctuating and can't be always determined. This is a demerit of retained earnings.

The a company or a business revolves around earning profits, for the same, it has to perform financial planning to keep the business running. Some parts of the profits that are earned are usually kept for use in the future. This foresight of retaining a portion of the net earnings is known as retained earnings.

A part of the net profit that is usually kept for use in the future is known as retained earnings. Retained earnings are a permanent source of funds available to the organisation as it is the amount that has been retained from the net earnings by the organisation and can be flexibly used.

Retained earnings are the funds which have been kept by the company for their future expenses out of the net earnings gained by the company over the course of business. These retained earnings can be a source of funds for internal financing, as a help in the low business turnover or self financing for the smooth functioning of the business or company.

The capital raised by issue of preference shares is called as preference share capital.  The preference share holders enjoy a preferential position over equity shareholder in receiving fixed dividend out of the net profits of the company and receiving capital at the time of liquidation.

The capital raised by issue of preference shares is called preference share capital.Debentures are an important instrument for raising long term debt capital. Both resembles each other as they bear fixed rate of return on the capital that has been raised.

Company owners are not ordinary share holders but equity share holders, which is also known as owner's share capital. So the company property belongs to the equity share holders.

For a company to be subsidiary the other company should hold 50% of its shares. Subsidiary company is also known as the nominee of the holding company.

A guarantee company is a type of corporation designed to protect members from liability. Guarantee companies often form when non-profit organizations wish to attain corporate status. If the guarantee company having share capital, the liability of share holders is guarantee plus the unpaid value of shares.