Target distribution ratio
Target distribution ratio is the percentage of net income distributed to shareholders through cash dividends or stock repurchases.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Target distribution ratio. Percentage of net income distributed to shareholders through cash dividends or stock repurchases.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
