Search results
Results From The WOW.Com Content Network
The dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends: Dividend payout ratio = Dividends Net Income for the same period {\textstyle {\mbox{Dividend payout ratio}}={\frac {\mbox{Dividends}}{\mbox{Net Income for the same period}}}}
In finance, a repayment plan is a structured repaying of funds that have been loaned to an individual, business or government over either a standard or extended period of time, typically alongside a payment of interest. [1]
The financial targets used in an earnout calculation may include revenue, net income, EBITDA or EBIT targets, and the selection of metrics also influences the terms and conditions of the earnout. Sellers tend to prefer revenue as the simplest measurement, but revenue can be boosted through business activities that hurt the bottom line of the ...
The Modigliani–Miller theorem states that dividend policy does not influence the value of the firm. [4] The theory, more generally, is framed in the context of capital structure, and states that — in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market — the enterprise value of a firm is unaffected by how that firm is financed: i.e ...
The net free cash flow definition should also allow for cash available to pay off the company's short term debt. It should also take into account any dividends that the company means to pay. Net free cash flow = Operation cash flow − Capital expenses to keep current level of operation − dividends − Current portion of long term debt − ...
When drafting a financial plan, the company should establish the planning horizon, [10] which is the time period of the plan, whether it be on a short-term (usually 12 months) or long-term (two to five years) basis. Also, the individual projects and investment proposals of each operational unit within the company should be totaled and treated ...
A financial forecast is an estimate of future financial outcomes for a company or project, usually applied in budgeting, capital budgeting and / or valuation. Depending on context, the term may also refer to listed company (quarterly) earnings guidance .
It is the opposite of the dividend payout ratio, and is a key indicator of how much profit a company is keeping to fund its operations, growth, and development. The retention ratio can be calculated using the following formula, essentially, the amount of dividends the company pays out divided by its net income :