Study on the Idea of Maximum Payout

In this paper, the Idea of Minimum Cost (IMC) is discriminated and its disadvantages are discussed and concluded. Subsequently, this paper collectes the financial annual reports of 1752 listed companies in China in 2009 and analyzes the relationships of among Sales Cost (SC), Total Assets (TA) and Sales Profit (SP), as well as the relationships among Net Asset per share (NAPS), Earning per share (EPS) and Return on Net Assets (RONA). And the Idea of Maximum Payout (IMP) is demonstrated according to the results of the above analysis, with the addition of some other literature maerials. Then the concept of IMP is defined and its connotation is also introduced, based on which the concept and connotation of Payout Transferring (PT) are introduced. At the end of this paper, the significance and main application of IMP are descibed.