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    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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    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 ...

    Solution Summary

    The expert examines earnings and profits for dividends distributions.