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To: Christopher Reed who wrote (83984)6/20/1999 4:23:00 PM
From: L. Adam Latham  Read Replies (1) | Respond to of 186894
 
Chris:

Re: But don't forget that both F and GM pay a much bigger dividend. That reduces the profit margin by giving profits to stock holders.

Dividends paid do not affect net profit or profit margins. Rather, they affect the stockholder's equity by reducing the company's retained earnings.

Adam