(Difference between pages)
imported>Doug Williamson |
imported>Doug Williamson |
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| The investor's return on an investment, expressed as a proportion of the amount invested.
| | ''Corporate finance.'' |
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| Most commonly expressed as a percentage.
| | In the corporate finance context, ''Re'' is an abbreviation for Return on equity. |
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| <span style="color:#4B0082">'''Example'''</span>
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| GBP 1 million is invested.
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| GBP 1.03 million is repayable at the end of the period.
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| The rate of return per period (r) is:
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| r = (End amount / Start amount) - 1
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| ''Which can also be expressed as:''
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| r = (End / Start) - 1
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| = (1.03 / 1.00) - 1
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| = 0.0300
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| = '''3.00%''' per period
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| === Basis of quoting rates of return ===
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| The rate of return in the example above has been calculated and stated on a [[periodic]] basis.
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| Rates of return are often also quoted on an annual basis, following the convention for the market in which the proposed deal is being negotiated.
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| == See also == | | == See also == |
| * [[Conventional year]] | | * [[Capital asset pricing model]] |
| * [[Cost of capital]]
| | * [[Return on equity]] |
| * [[Effective annual rate]]
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| * [[Expected rate of return]]
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| * [[Nominal annual rate]]
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| * [[Periodic]]
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| * [[Periodic rate]]
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| * [[Real return]]
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| * [[Return]] | |
| * [[Yield]]
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| [[Category:Corporate_finance]] | | [[Category:Corporate_finance]] |
| | [[Category:Investment]] |
| | [[Category:Financial_products_and_markets]] |
Latest revision as of 13:37, 19 July 2019
Corporate finance.
In the corporate finance context, Re is an abbreviation for Return on equity.
See also