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Meaning of Returns
The return from holding an investment over some period - say, a year, is simply any cash payments received due to ownership, plus the change in market price, dividing by the beginning price. This holding period return measure is useful with an investment horizon of one year or less. For longer periods, it is better to calculate rate of return as an investment's yield (or internal rate of return).
No External Financing for New Proposals: If a firm have sufficient retained earnings with it as required by the new proposal, then the firm may not raise any external finance. In
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