Earnings and Profits for a Corporation
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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?
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Solution Summary
The expert examines earnings and profits for dividends distributions.
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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 ...
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