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An elementary school class took a spelling test immediately after learning how to bake a cake. The teacher noticed that many of the students spelled the word "FLOUR" instead of the vocabulary word "FLOWER," illustrating:
Retained Earnings
Represents the portion of net income that is not distributed to shareholders but retained by the company for reinvestment in its operations or to pay debt.
Dividend Payout Ratio
The fraction of net income a firm pays to its shareholders as dividends, typically expressed as a percentage.
Profit Margin
A financial metric that measures the extent to which a company or a business activity makes money, expressed as a percentage of revenues.
Dividend Payout Ratio
A financial metric that shows what portion of a company's earnings is distributed to shareholders in the form of dividends.
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