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When a Corporation Decides to Include Its Own Corporate Stock

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When a corporation decides to include its own corporate stock as part of the compensation for its employees, it is trying to solve the


Definitions:

Sales

The total amount of goods or services sold by a company within a specified period.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Salvage Value

The projected value an asset will hold for resale when it's no longer useful.

Tax Rate

The share of one's or a company's revenue earmarked for taxation.

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