BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Payout (Dividend) Policy soru detayı:

PAYLAŞ:

SORU:

What do the terms "target distribution ratio" and "target payout ratio" mean?


CEVAP:

 

Target distribution ratio is the percentage of net income distributed to the shareholders through cash dividends or stock repurchases; while the target payout ratio is the percentage of net income paid out as cash dividends. As the distribution ratio includes both cash dividends and stock repurchases, the distribution ratio must be higher than the payout ratio.