A Useful Rule to Remember in Distribution Is That Although

question 169

True/False

A useful rule to remember in distribution is that although channel members (middlemen) can be eliminated, their functions cannot.

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Definitions:

ROE

Return On Equity, a profitability ratio that measures the ability of a firm to generate profits from its shareholders' investments in the company.

Required Return

The minimum expected return an investor demands to compensate for the risk of an investment.

Plowback Ratio

The proportion of earnings retained by a company rather than distributed to its shareholders as dividends.

P/E Multiple

Also known as Price-to-Earnings Ratio, it compares a company's share price to its per-share earnings, used to evaluate if a stock is over or undervalued.