Required Rate Of Return
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Learn more about this method used in inequity valuation and corporate finance.
The dividend payout ratio and retention ratio measure how much profit a company gives back to shareholders as dividends. When a business earns money, it must decide whether to use all of its earnings for future operations or to pass some of it along to stockholders through a quarterly dividend check.
Most investment choices involve a tradeoff between risk and reward. The "Efficient Frontier" is a modern portfolio theory tool that shows investors the best possible return they can expect from their portfolio, given the level of volatility they're willing to accept.
A business's "gross margin" is a rough gauge of how profitable its operations are. It measures how much sales revenue the company retains after all of the direct costs associated with making a product or providing a service are accounted for. Direct costs refer to materials, labor and expenses related to producing a product.
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Learn how to differentiate between a legitimate marketing strategy and a pyramid scheme.
Learn about how this number provides a measure of how much systematic risk a firm's equity has compared to the market.
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