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The Regular Use of ________ Can Alert Managers to Potential

question 7

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The regular use of ________ can alert managers to potential problems and employees' intentions early enough to do something about them.


Definitions:

Dividend-payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company’s total earnings.

Growth Rate

The rate at which a company, economy, or investment grows over a specific period, often expressed as a percentage.

Financial Leverage

Financial leverage is the use of borrowed funds to increase an investment's potential return, which also increases the risk of loss.

Dividend Discount Model

A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.

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