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Economic Value Added
A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.
Gordon Model
A mathematical model for valuing stock based on an assumed constant growth rate into the indefinite future.
Cost Of Retained Earnings
The opportunity cost for shareholders of having a company retain and reinvest earnings rather than distributing them as dividends, often approximated by the expected return on equity.
Dividend
A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis, as decided by the board of directors.
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