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Explain expectancy theory.
Profit Margin
The percentage of revenue that remains as profit after all expenses are deducted from sales.
Net Income
Net Income is the total earnings of a company after all expenses and taxes have been deducted from total revenue.
Payout Ratio
The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.
Common Dividends
Dividends distributed to holders of common stock, often based on the company's profitability and declared by its board of directors.
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