Every Year, More and More Companies Report That Their Spending

question 71

True/False

Every year, more and more companies report that their spending on traditional media is remaining stable, while the resources they plan to devote to social media are increasing.

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Definitions:

Retained Earnings

The part of net profits not distributed as dividends, instead kept by the company for reinvestment in its main business or for debt repayment.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

Price-Earnings Ratio

A valuation metric for a company, calculated by dividing the market price per share by the earnings per share.

Target Payout Ratio

The proportion of earnings a company plans to distribute to its shareholders as dividends, often expressed as a percentage.