Capital outlay, also known as capital expenditure (CapEx), refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. It is a crucial aspect of an organization's investment strategy and financial management.
Return on investment equal to the original marketing expenditure; also known as payback. When a company recovers its investment plus the expected built-in return from launching or reintroducing a new product or service, it has realized a profit from its original capital outlay. A company's payout represents the minimum amount of dollar sales that must be generated to offset the cost of an advertising program.
Pre-acquisition profits refer to retained earnings accumulated by a company before it is acquired by another entity. These profits are not to be distributed to the shareholders of the acquiring company as dividends, as they represent a recovery of the cost of investment rather than income.
