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Research on performance appraisal suggests
Interest Expense
The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.
Tax Expense
The total amount of taxes a company incurs on its taxable income, including federal, state, and local taxes.
Net Operating Income
A financial metric that calculates a company's profit after all operating expenses are subtracted from total revenue.
Residual Income
The net income an investment generates above a minimum required return.
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