Examlex
Which of the following would be virtually indistinguishable under the microscope?
Cash Dividends
Distributions made to shareholders by a company, often in the form of profit sharing.
Retain Earnings
Profits kept in the company to reinvest in the business or pay down debt, not distributed to shareholders.
Dividend Policy
The strategy a company uses to decide how much it will pay out to shareholders in dividends.
Payout Ratio
A financial metric that measures the proportion of earnings paid out to shareholders in the form of dividends, usually expressed as a percentage.
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