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Your total return on an investment is the sum of dividends and capital gains.
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More specifically, it can be defined as the sum of investments, dividends, and change in working capital decreased net cash-flow.
Determine the amount of dividends paid out.
Now calculate a real aftertax total return, the sum of the returns on dividends and capital gains.
A share is worth the sum of all its prospective dividend payments, discounted back to their net present value.
National income thus calculated represents the aggregate income of the owners of the factors of production; it is the sum of wages, salaries, profits, interest, dividends, rent, and so on.
The rate of return is the sum of all income flowing to capital rents, dividends and profits—as a percentage of the value of all capital.
The sum, he says, will be invested in east African treasury bonds and stocks, in the hope of dividends producing $700,000 a year to invest in Bumbuli.Some of the cash would help farmers package their fruits and vegetables.
That shows the power of dividends.
Another measure of dividends is the percentage of net profits distributed to shareholders as dividends.
The retained earnings are calculated as the difference between the total income and the sum of labor costs, the interest payment, and the dividend.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com