If dividends are distributions that come out of a corporation's earnings and profits (E&P), what exactly is E&P? What is it attempting to measure? How is it calculated?© BrainMass Inc. brainmass.com June 4, 2020, 1:55 am ad1c9bdddf
Earnings and Profits is an accounting term related to stockholders of closely held businesses (www.investopedia.com). Earnings and Profits are a company's net profits after deducting distributions to the stockholders (www.investopedia.com). It is calculated at the ...
The expert examines earnings and profits for dividends distributions.