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

Securitization, Securitization refers to conversion of illiquid asset...

Securitization refers to conversion of illiquid assets to liquid assets by converting longer duration cash flows into shorter duration ones. Securitization denote

Define working capital, What is working capital? Working capital contains...

What is working capital? Working capital contains the current assets of the firm.

Double declining balance method , Suppose that the business uses the double...

Suppose that the business uses the double declining balance method to depreciate its equipment (a) Determine the net book value, depreciation expense, and accumulated deprecia

Companies accuse investors of performing credit sales, At times, companies ...

At times, companies accuse investors of performing credit sales that they make their quotations fall. Is that true? It is true: there are companies that accuse investors who pe

Computation of the cost of capital, Q. Computation of the cost of capital? ...

Q. Computation of the cost of capital? Computation of overall cost of capital of the firm invoices Cost of debts: debt may be issued at par , at premium or discount it may

Define a callable bond, What is a callable bond? What is a putable bond? ...

What is a callable bond? What is a putable bond? How do each of these features affect their respective market interest rates? A callable bond may be retired untimely at the dis

Investment banker do when underwriting new security issue, What does an inv...

What does an investment banker do when underwriting a new security issue for a corporation? While underwriting a new security issue an investment banker buys it and after that re

Lease, Lease A lease is a contractual arrangement allowing one party th...

Lease A lease is a contractual arrangement allowing one party the use of some exact assets for a specific times period in exchange for a payment it is same as a rental arrangem

Working capital, which are the components of working capital management?

which are the components of working capital management?

Explain about the term- contingent liabilities, Explain about the term- Con...

Explain about the term- Contingent liabilities Under IAS 37 provisions, contingent assets and contingentliabilities, contingent liabilities aren't recognised in the financia

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages