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

What is a fair price for a share, Sega Inc. expects earnings/dividends to g...

Sega Inc. expects earnings/dividends to grow at an annual rate of 30 percent for the next 4 years. After that they feel that the market will get saturated and the growth rate will

The key stages of a typical procurement cycle, QUESTION 1 Discuss the r...

QUESTION 1 Discuss the role and contribution of the procurement function in an organisation. QUESTION 2 Discuss the main objectives of purchasing negotiations. Compare

Fiancial management, Ashok is to receive an amount of Rs. 15,00,000 from hi...

Ashok is to receive an amount of Rs. 15,00,000 from his relative after 3 years. He wants to buy a house for which he wants the money to be paid now. His relative had al

Calculation of a firms sales returns, a) The combined two-firm concentratio...

a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha

What are the reasons why organisations grow, What are the Reasons why organ...

What are the Reasons why organisations grow Required to provide higher financial returns to investors e.g. increases the wealth of shareholders Possible to achieve econ

Explain the currency trading at a discount, What is meant by a currency tra...

What is meant by a currency trading at a discount or at a premium in the forward market? Answer: The forward market includes contracting today for the future purchase or sale o

Rejecting proposed projects when using net present value, What is the decis...

What is the decision rule for accepting or rejecting proposed projects when using net present value? When going with the net present value decision rule any project with a net

Example of securitization,

Operating cycle, Uses of operating cycle in business

Uses of operating cycle in business

Show the accept-reject criteria, Q. Show the Accept-Reject Criteria? Ac...

Q. Show the Accept-Reject Criteria? Accept-Reject Criteria:- If the actual payback period is not more than the predetermined payback period...................... Project

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages