Examlex
A good merit pay system should be based on:
Required Return
The least annual profit percentage that attracts firms or individuals to place investments in a specific security or project.
Dividend Yield
A ratio reflecting the yearly dividend payments of a company as a proportion of its stock price.
Stock Price
Stock price is the current market price at which a share of stock can be bought or sold, reflecting the value that the market assigns to a company.
Required Return
The minimum return that investors expect to earn on their investment to compensate for its risk.
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