Examlex
A simple process known as the PREP formula can help when you are called on to speak extemporaneously. Using it, you can break your answer into the following four parts:
Operating Expenses
Regular costs for operating a business, including rent, utilities, payroll, and materials, but excluding costs associated with the production of goods sold.
Corporate Tax Rate
The percentage of a corporation's taxable income that it must pay to the government as tax.
Earnings Per Share
A financial ratio that measures the amount of net income earned per share of stock outstanding.
Cash Dividends
Cash payouts by a company to its stock owners, regularly as a sharing of profits.
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