TARR Definition

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TARR is Time-Adjusted Rate of Return.

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LIQUIDATING DIVIDENDS are dividends paid by a corporation that is in the process of liquidation/bankruptcy. Liquidating Dividends are paid from the capital of the corporation as opposed to earnings. Recipients of Liquidating Dividends are typically shareholders, bond holders and/or creditors. In the U.S. such dividends are generally nontaxable under the Internal Revenue Code.

PRE-TAX INCOME/PROFIT see PROFIT BEFORE TAXES.

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