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Gauge Stickiness,companies Use the Following Formula

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gauge stickiness,companies use the following formula:


Definitions:

Required Return

The minimum profit or yield that investors expect or require from an investment.

Interest

The cost of borrowing money or the income earned from lending money, usually expressed as a percentage of the principal.

Coupon Rate

Yearly interest earnings from a bond, shown as a percentage of its face value.

Par Value

A nominal value assigned to a share of stock as indicated in the corporate charter, not necessarily reflecting its market value.

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