Explain the Concept of RFM Analysis

question 89

Essay

Explain the concept of RFM analysis.

---

Definitions:

Capital Structure

The mix of different forms of funding used to finance a company's operations and growth, including debt and equity.

Income Tax

A tax levied by governments on the income generated by businesses and individuals within their jurisdiction.

Dividend Reinvestment Plan

A corporate program enabling investors to use their cash dividends to buy more or partial shares when dividends are paid out.

Residual Dividend Policy

A strategy where dividends are paid to shareholders from the leftover or residual earnings after all operational and expansion-related expenses are met.