Explain the Three Different Types of Cohort Effects

question 69

Essay

Explain the three different types of cohort effects.

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Definitions:

Earnings Retention

The portion of a company's profits that is not distributed to shareholders as dividends but is kept by the company to reinvest in its core business or to pay debt.

Annual Dividend

represents the total dividend payment a company distributes to its shareholders within a given fiscal year.

Market Value

The cost for buying or selling assets or services in the marketplace at this time.

Constant Rate

A fixed percentage rate applied over a certain period which does not change.