Examlex
Key Terms
Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
Dayton Agreement
Minimum Required Return
The lowest acceptable return on an investment, based on risk tolerance and financial goals.
Residual Income
The income that exceeds the minimum required return on investment or capital employed; often used as a performance measure.
Return On Investment
A measure of the profitability of an investment, calculated as the net profit from the investment divided by its initial cost.
Sales Dollars
The total revenue generated from the sale of goods or services, typically reported in a company's financial currency.
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