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Cash on cash return |
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Cash on cash returnA method used to find the return on investments when there is no active secondary market. The yield is determined by dividing the annual cash income by the total investment. See: Current yield or yield to maturity.Cash on cash return Similar MatchesReturn on investmentReturn on investmentThe overall profit (or loss) on an investment expressed as a percentage of the total invested. For example: A person invests £5,000 in the shares of a company and some time later has received £100 in dividends with the value of the shares now £5,200. The return on investment is: (£100 + £5,200 - £5,000) /£5,000] x 100 = 6% Total returnTotal returnThe gain or loss on an investment which is made up of two components:Income: dividends or interestCapital growth: increase in the share price or bond priceThe investment trust and unit trust industry devises creates funds which aim either for income, or for growth, or for a balance of the two. As a private investor who is considering investing money in these funds, it is very important to find out beforehand what the stated objectives of the fund are, and how successful it has been in the past in meeting them. "Static" Return"Static" ReturnThe return that an investor would make on a particular position if the underlying stock were unchanged in price at the expiration of the options in the position. Return on equityReturn on equityThe adjusted profit of a company divided by its equity. For instance, if the adjusted profit of a company is £1m and Equity is £10m, the Return on Equity is 10%.Adjusted profit is the profit of the company adjusted to exclude the impact of non-recurring exceptional gains, losses, income and charges. The figure can be found in the company's Profit and Loss Account. Equity is the total of ordinary share capital plus reserves, and both figures appear in the company's Balance Sheet. In calculating Return on Equity, you can use the Equity at the end of the year or the average between the opening and closing equity. Leveraged required returnLeveraged required returnThe required return on an investment when the investment is financed partially by debt. Further SuggestionsReturn on equity (ROE)Return of capital joint tax return Fair rate of return Risk adjusted return Compound Annual Return Increasing And Diminishing Returns Return on total assets Expected return on investment Increasing returns to scale Risk return tradeoff Average rate of return (ARR) Average accounting return Incremental internal rate of return Return Portfolio internal rate of return Required Rate of Return (RRR) T period holding period return Unleveraged required return Return Cumulative abnormal return (CAR) Pretax rate of return Diminishing returns Inheritance tax return return on capital employed |
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