Large hydropower projects would be offered highest rate of return
after the revision at 16% in dollar denomination compared to maximum 18% offered on Thar coal at present.
The rate of return
to the borrower on the down payment increase would be 12.2 percent calculated over 12 years.
The intuition underlying the upgrade of the required rate of return
for the residual discounted cash flow is as follows.
where, , [beta] =[OMEGA][[omega].sub.m]/[[sigma].sub.m.sup.2], [c.sub.m] = ([R.sub.m] - r)/ [[sigma].sub.m.sup.2], [[lambda].sub.m] = [c.sub.m] [[omega].sub.m], [beta] is the n x 1 vector of beta, [OMEGA][[omega].sub.m] is the n x 1 vector of covariances between the rate of return
on ith risky asset [[??].sub.m]i = 1,2, ..., n and the market portfolio rate of return
[[??].sub.m],[[sigma].sub.m.sup.2] = [[omega].sub.m.sup.T] [OMEGA][[omega].sub.m].
This is because for all these alternative methodologies, capital compensation is the residual of nominal output minus labour compensation, and the rate of return
to capital is endogenously determined.
Another key measure of confidence, the rate of return
on Spain's 10-year bond compared with that of benchmark German Bunds, ticked up slightly after Thursday's sale however.
These returns can be calculated after the fact, as above, or the formula can be used to calculate the amount that can be invested to purchase an income stream to yield a desired rate of return
. For example, if a given investment is expected to earn $50 and the required rate of return
is 25 percent, the amount that can be invested is $200.
We examine both the rate of return
and the volatility of the price indexes.
The rate of return
to education is the annual amount of wages received above some base amount; for example, the difference between a doctoral and a college degree.
The analysis calculates marginal rate of return
(MRR) which is
Measures like Q-tobin's (for more, see Wernerfelt and Montgomery (1988)), Economic Value Added (EVA) and Refined Economic Value Added (REVA) (Bacidore et al., 1997), alongside the usual accounting and economic measures like return over assets, net present value and internal rate of return
are all attempts at giving good information on firm performance.
It is simply the net operating income (NOI) of the property (before any debt service) divided by the price, which equates to a percentage rate of return
if the investor were to purchase a property with no debt (all cash).