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DIVIDENDS Companies can avoid the dividend tax by retaining earnings rather than paying dividends.
Companies' excessive retaining earnings has become a political issue and may become a major topic of corporate governance reform.
In separate statements, R.B.S. and Lloyds said Wednesday that they would increase their capital reserves by retaining earnings and selling assets.
(Equity isn't the same thing as reserves; banks can raise equity either by selling more shares to the public or just retaining earnings and investing them in the company).
Most large European banks that need to raise new capital will be able to do so by retaining earnings rather than paying dividends to shareholders, said Jon Peace, an analyst at Nomura Equity Research.
The banks, Royal Bank of Scotland and the Lloyds Banking Group, both partly owned by British taxpayers after receiving multibillion-dollar bailouts during the financial crisis, said they would meet the requirement by retaining earnings and selling assets.
Similar(48)
The earned surplus is the accumulation of retained earnings.
In the past decade, TSS has experienced a $1.02 gain in EPS and a $5.22 gain in retained earnings, meaning that management has proved it can earn shareholders a 19.5% return on those retained earnings.
"We are using our retained earnings.
Most of our films are made with retained earnings.
China's small firms retain earnings because they need them.
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CEO of Professional Science Editing for Scientists @ prosciediting.com