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The Lower the Payout Ratio,the Greater the Odds That the Company's

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The lower the payout ratio,the greater the odds that the company's earnings will sustain future dividend payments.


Definitions:

Individual Identity

The distinctive characteristics or personality that makes a person unique from others.

Typical Consolidation

The process of combining multiple financial statements from different entities into one aggregate financial statement.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate, to determine its profitability.

Acquisition

The process of obtaining control of another corporation, purchasing a significant amount of its stock, or buying its assets.

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