EMPLOYEE STOCK OWNERSHIP PLAN Definition

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EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) is an employee benefit to acquire ownership of shares in their company without necessarily laying out personal capital.

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MARGINAL TAX RATE is the top rate of income tax that is charged to individuals on their earnings.

OPERATING CASH FLOW RATIO is a measure of how well current liabilities are covered by the cash flow generated from a companys operations. It is calculated: OCF = Cash Flow From Operations / Current Liabilities.

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