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Fair rate of return |
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Fair rate of returnThe rate of return that state governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and provide service upgrades to their customers.Fair rate of return Similar MatchesRiskless rate of returnRiskless rate of returnThe rate earned on a riskless asset. Inheritance tax returnInheritance tax returnTax form required to determine the amount of state tax due on an inheritance. Return 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. Multiple rates of returnMultiple rates of returnMore than one rate of return from the same project that make the net present value of the project equal to zero. This situation arises when the IRR method is used for a project in which negative cash flows follow positive cash flows. For each sign change in the cash flows, there is a different rate of return. Further SuggestionsReturn to capitalReal rate of return Cash on cash return Safety net return Individual tax return annual return Market RRR (required rate of return) Schedule return on capital employed Average accounting return Return of capital Market return Separate tax returns Required Rate of Return (RRR) Required return Total return Joint tax return Holding period return Law of Diminishing Returns Rate of return Pretax rate of return Risk return tradeoff Rate Of Return After tax real rate of return T period holding period return Geometric mean return |
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