What are the components of return, Financial Management

Assignment Help:

What are the Components of Return

Return is fundamentally made up of two components:

Periodic cash receipts or income on the investment in the form of interest, dividends, etc. The term yield is usually used in connection with the component of return. Yield refers to income derived from a security in relation to its price, generally its purchase price.
Appreciation (depreciation) in the price of the asset is referred to as capital gain (loss). This is the difference between purchase price and price at which asset can be, or is, sold.

Related Discussions:- What are the components of return

Explain the preferred stocks by equity claims, Explain the preferred stocks...

Explain the preferred stocks by equity claims. Preferred stocks are equity claims with limited ownership rights in comparison to common stocks. They differ from common stocks i

Strategies to achieve financial targets, The XYZ company supplies products ...

The XYZ company supplies products to a number of original equipment manufacturers (OEM's). It employs 5,000 mostly unionized workers and generates about $2.2 billion in revenue ann

Federal reserve board, Federal Reserve Board The Federal Reserve Board ...

Federal Reserve Board The Federal Reserve Board controls the nation's monetary policy, regulates banks, and searches to keep the financial stability of the United States. Its t

Capital investment plans , Report based on Capital Investment Plans ...

Report based on Capital Investment Plans To analyze the capital investment plans of Hatsun Agro Products Limited (HAPL) we shall look at the capital expenditure of HAPL in

Setting budget goals and objectives, Setting Budget Goals and Objectives: ...

Setting Budget Goals and Objectives: Having collected and analysed all relevant information, and made general forecasts as to the key areas of concern / opportunity and special

Explain cash flow budget and npv in lkl plc, LKL PLC Project VZ (...

LKL PLC Project VZ (a) Cash Flow budget and NPV WORKINGS

Explain financial management and functional areas , 1. Discuss the various...

1. Discuss the various techniques of cash management for an efficient working capital Management. 2. Discuss the MM Hypothesis of Capital structure and its importance in corpo

Operating cycles, use the operating cycle to formulate a broiler business

use the operating cycle to formulate a broiler business

State the major decision of financial management, State the major decision ...

State the major decision of financial management The major decision of financial management is the decision relating to dividend policy. The dividend must be analysed in relat

Adjustment of prepaid insurance, Accountants should not reverse the adjustm...

Accountants should not reverse the adjustment of prepaid insurance to recognize insurance expense at the end of the accounting period because: Answer a. . doing so results in

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages