Excess Return and Exchange-for-value system: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Add links.)
 
Line 1: Line 1:
(ER).
A system dealing with two-way exchanges of assets, often including money.


A senior management performance measure which is based on the excess of the Actual wealth enjoyed by shareholders over the Expected wealth required by shareholders.
Contrasted with funds transfer systems, which generally deal with one-way transfers of money only.
 
The Actual wealth of the shareholders is calculated from the market share price and the amounts and timing of cash dividends paid out to the shareholders.
 
The Required wealth of the shareholders is based on the amount and timing of their investment, and their required rate of return on investments of this company's level of risk.




== See also ==
== See also ==
* [[Economic value added]]
* [[Assured payment system]]
* [[Excess]]
* [[Credit risk]]
* [[Market value added]]
* [[Funds transfer system]]
* [[Money]]
* [[Transfer]]
* [[Transfer system]]


[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]
[[Category:Corporate_finance]]

Latest revision as of 18:12, 13 March 2023

A system dealing with two-way exchanges of assets, often including money.

Contrasted with funds transfer systems, which generally deal with one-way transfers of money only.


See also