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Dividend and Retention |
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Dividend Payout Ratio |
Summary of Dividend and Retention Ratio. Abstract |
The DPR Formula for cash flow measurement is relatively straightforward: Divide the total Annual Dividend Payments by the total annual Net Income plus Noncash Expenses minus Noncash Sales. Calculating the DPR for one year provides a very unreliable indication only. A better approach is to run a trend line on the ratio for several years to see if a general pattern of decline or increase emerges. This ratio is useful in projecting the growth of company as well. Its inverse, the Retention Ratio (the amount not paid out to shareholders in the form of dividends), can help project a company’s growth. T I P : Here you can discuss and learn a lot more about dividend payout and the DPR. Compare with the Dividend Payout Ratio: Cash Flow from Operations | Debt to Equity Ratio | CFROI | Cash Value Added | Cash Ratio | Economic Value Added |
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