| What should the rate of return? |
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oldman8
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| What should the rate of return? |
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Q1) If i'm given the issued preference share price at $10 and the current preference share price at $15. With a dividend of $1 p.a. What should be the required rate of return?
Am i right to use the current share price to calculate the current required rate of return?
Q2) If i were to incur a lost (sale price - book value) of $20k in equipment sale. How should i enter this value for tax deduction purpose? Eg. if i have a net profit before tax of $50k and tax of 30%. Should i deduct $20k from this net profit first or deduct after applying tax on the $50k?
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Sun Aug 20, 2006 5:42 am |
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oldman8
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Thanks Tim, i have a better understanding now. Long way for me to go in this field. hehehe. 
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Mon Aug 21, 2006 12:15 am |
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oldman8
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quote:
Originally posted by coaster
There is actually a term called "Required Rate of Return" but I didn't think it's what you wanted:
http://www.kathleensindell.com/requiredrateofreturn.htm
It has to do with comparing two different investments or with whether an investment makes sense, both taking into account things like risk-free rate of return, beta, risk premium, and all sorts of other complicated stuff. Best left to a computer. 
Wooo...i just had a look at it, really complicated for my simple mind. hehe, i better stick to simpler stuffs for now. Risk have to come later. 
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Mon Aug 21, 2006 2:43 am |
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