Management and investors really do need to understand ‘total returns to shareholders’ (TRS), so all such folk would do well know how TRS really works. A better way to understand TRS would be pretty good as class 1 in any MBA strategy class too, and strategy profs [and their economist colleagues] could try explaining how their theories – largely based on crude, static profitability ratios – fit with this over-riding imperative for corporate management.Share
Compulsory reading! Shareholder returns.
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