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What Makes a Variable Ratio Schedule Effective

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What makes a variable ratio schedule effective?


Definitions:

Bond Issue

The process by which a company or government raises funds by selling bonds to investors, which then are obliged to pay back with interest.

Cost of Equity

The return a company theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.

Annual Dividend

The total dividend payment a company makes to its shareholders in a single year.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

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