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Residual Income
Income that remains after all costs and expenses, including a charge for capital, have been deducted.
Return On Investment
A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit of the investment by its initial cost.
Cost Of Capital
Cost of capital represents the return rate that a company must achieve to maintain its market value, affecting its ability to invest in new projects or assets.
Profit-Based Measure
A financial metric used to evaluate the profitability of a business, project, or investment, such as net profit margin.
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