Required return
The minimum expected return you would require to be willing to purchase the asset, that is, to make the investment. ...
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Required Return
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Required return
The minimum EXPECTED RETURN you require from an INVESTMENT to be willing to go ahead with it.
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Required Return Minimum return required by investors to compensate them for assuming risk.
Required return
The minimum expected return you would need in order to purchase an asset, that is, to make the investment.
Required yield ...
The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted.
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The required return for a capital budgeting project.
Dependent
Acceptance of a capital budgeting project contingent on the acceptance of another project.
The required return on an investment when the investment is financed partially by debt.
Liability
A financial obligation, or the cash outlay that must be made at a specific time to satisfy the contractual terms of such an obligation.
The required return on an investment when the investment is financed entirely by equity (i.e., no debt).
Unlevered cost of equity
The discount rate appropriate for an investment that it is financed with 100% equity.
Unlimited liability ...
The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. Cost of capital includes the cost of debt and the cost of equity.
The required return for a capital budgeting project.
Cost of carry
Used in the context of general equities.
Leveraged required return
The required return on an investment when the investment is financed partially by debt.
Leveraged stock
Stocks financed with credit, such as that purchased on a margin account.
Failure to file required returns such as Form 990 (Return of Organization Exempt From Income Tax) may result in monetary fines of up to $250,000 per year.
Hurdle rate
The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted.
Asset-specific required return
The CAPM returns the asset-appropriate required return or discount rate - i.e. the rate at which future cash flows produced by the asset should be discounted given that asset's relative riskiness.
Implicit tax Lower or higher before-tax required returns on assets that are subject to lower or higher tax rates. Implied call The right of the homeowner to prepay, or call, a mortgage at any time.
Economic value added (EVA) A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested.
Leveraged beta The beta of a leveraged required return; that is, the beta as adjusted for the degree of leverage in the firm's capital structure.
Cost of capital The required return for a capital budgeting project. Cost of carry Out-of-pocket costs incurred while an investor has an investment position.
Unleveraged beta The beta of an unleveraged required return (i.e., no debt) on an investment when the investment is financed entirely by equity. Unleveraged program The use of borrowed funds to finance less than 50% of a purchase of assets.
In other words, it is the difference between a security’s expected (or actual) return and its required return.
Although it may seem that multiples are the result of some kind of financial voodoo, they are simply a factor to reflect a buyer's required return on investment. Multiples are simply the inverse of return on investment.
Under this approach future cashflows are assessed and the price calculated that would give the required return which in this case is 30%.
NOTE: Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions.
A firm's WACC is the overall required return on the firm as a whole. It is the appropriate discount rate to use for cash flows similar in risk to the overall firm.
See also: Cost of Capital, Cost of Equity, Debt, Discount Rate, Equity, Market Value ...
While facts are irrefutible, there are subjective judgements to be made by you about your required return on investment, and external market factors that are open to interpretation, that may ultimately determine your valuation outcome.
INVESTMENT PRODUCT LINE (IPL) - The line of required returns for investment projects as a function of b...
INVESTMENT PROPERTY - 1. Certificated or uncertificated security, entitlement, securities account, comm...
The Deal Check calculation in ValuAdder automatically accounts for the required return on downpayment when determining the business cash flow necessary to make the deal work.
Structuring Business Sale Price and Terms
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Average Interest Method = "A method of computing required return on investment based on the average book value of an asset during its life or during a specified study period." (ref. Szonyi) ...
The discount rate calculated for CAPM is the required return on equity, and is also therefore used to calculate the weighted average cost of capital (WACC), which is typically used within companies to assess the profitability of projects.
return required by investors before they will commit money to an investment at a given level of risk. Unless the expected return exceeds the required return, an investment is unacceptable.
Dictionary of Finance and Investment Terms
yield ...
Required Rate Of Return
Return that an investor requires before they are willing to earmark money for an investment that has a certain risk level. The expected return must be greater than the required return for the investment to be acceptable.
Three-star stocks should offer investors a return that's roughly comparable to the stock's cost of equity. (The cost of equity is often called a "required return" because it represents the return an investor requires for taking on the risk of owning ...
Thus, according to the Capital Asset Pricing Model, the projected return must be on par with or above the required return to rationalize the investment.
the beta value associated with the instrument/market/portfolio or is the risk of loss associated with your investments. Rm is the expected market return. Investments are good if the expected return from the investment equals/exceeds required return.
Hurdle rate The required return in capital budgeting. Hybrid A package containing two or more different kinds of risk management instruments that are usually interactive.
 See also: Expected return, Expense, Banks, Internal rate of return, Net present value
  
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