Sentences with phrase «capital equals the return»

Put simply, the cost of capital equals the return that equity investors require, at any moment in time, to purchase U.S. stocks instead of parking their cash safely in riskless Treasuries.

Not exact matches

1,900 companies have spent money on buybacks and dividends since 2010, and the combined return of capital to shareholders for those companies equals 113 % of capital spending, according to Reuters.

By definition, when the dividend yield is unchanged between the date you buy stocks and the date you sell them, your total return equals the dividend yield (income) plus the growth rate of dividends (capital gain).

The return on invested capital (ROIC) earned on such a deal would equal -9 %, well below Tesla's 9.5 % weighted average cost of capital (WACC).

(Now no one would bother providing capital at 0 return, however essentially it is assumed that the wage and profit approaches but does not equal those 2 amounts) Now in addition we assume that a new method of utilising capital appears that allows the old capital that needed ten labourers to be utilised with 1.

If an investor receives an amount that is less than or equal to the cost basis, the payment is a return of capital and not a capital gain.

Sharpe found that the return on an individual stock, or a portfolio of stocks, should equal its cost of capital.

Over the same time period, the BMO Equal Weight Banks ETF (ZEB) returned 1.11 % in the form of dividends and 6.4 % in the form of capital gains for a total return of 7.5 %.

For example, all else being equal, companies that overpay for acquisitions, or retain more capital than they can productively deploy, will show lower returns on capital than businesses that do the opposite.

Piketty applies these terms in his first fundamental law of capitalism, which is the accounting identity α = r x β, where alpha (α) equals capital's share of national income or the capital - labor split, r is the percentage rate of return on capital and Beta (β) is a ratio equal to the value of capital necessary to generate a years worth of national income.

All else being equal, capital seeks the highest return, and global money tends to migrate to currencies where interest rates are rising and away from currencies where interest rates are falling.

calberst: You'll have to use the return of capital to pay back the investment loan because future tax deductions equal to the ROC portion won't be allowed.

Put the cursor on the spreadsheet's cells to see that the calculation used increases the portfolio each year by the total return earned by its own investments (mostly capital gains plus any dividends), PLUS the capital infusion equal to the dividends of the S&P index.

I longed for the return of the Level 1 formulas of net working capital and assets minus liabilities equal to equity.

Beta is an input into the capital asset pricing model (CAPM) where the expected return of an asset is calculated based on its beta (ß), returns expectations, and a risk - free rate equal to the following:

By definition, when the dividend yield is unchanged between the date you buy stocks and the date you sell them, your total return equals the dividend yield (income) plus the growth rate of dividends (capital gain).

In return, you'll get a tax receipt equal to the fair market value of the securities donated, and you will not be taxed on the capital gains accrued on those securities, as you would if you sold the securities during your lifetime.

All else being equal, the higher the return on invested capital, the more valuable the business.»

For example, a capital protected investment linked to the top 200 Australian shares may pay investors a return equal to 80 % of the cumulative growth in the S&P / ASX 200 share index over 5 years.

A company with a declining moat has a higher probability of lower returns on capital in the future and should, therefore, have lower projected cashflows going forward, all else equal.

The equated yield is the discount rate or internal rate of return which when applied to the income expected over the life of the investment produces a present value that is equal to the capital outlay.