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Residual Income
The amount of income that an individual or company retains after deducting all expenses and cost of capital, including debt and equity costs.
Managerial Performance
Assessment of the effectiveness and efficiency of managers in achieving business objectives, often evaluated through financial and non-financial metrics.
Residual Income
The income that exceeds the required return on investment or minimum acceptable rate of return set by management.
Corporate Minimum Required Rate of Return
The lowest acceptable rate of return on an investment that a corporation deems sufficient for its operations and growth.
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