But he got zero in four areas -- return on equity, cost efficiency, brand management and compliance.
Investors can nudge their portfolios closer to a market economic weighting in real estate by purchasing a low-cost equity REIT index fund or ETF.
Translate the premium into an annual rate and you have the cost of equity.
GM's average annual return of 13% is respectable, but does not meet its 15% cost of equity.
The giant American bank delivered an average annual return of 37.3%, nearly four times its cost of equity.
When Apple shares became less volatile in the spring, the model would have cut the cost of equity to 16%.
Of course, if markets are illiquid, then investors may be reluctant to invest, and the cost of equity capital will rise.
None is a true bottom-line margin that relates profits to sales after deducting all costs, including the opportunity cost of equity capital.
DaimlerChrysler, conceived in 1998, ranks 14th from bottom, with an average annual return of -11%, the mirror image of its cost of equity.
According to a 2002 study by two economists at Indiana University, enforcing insider-trading laws reduced the cost of equity in the countries they looked at because investors did not demand a premium for the risk of trading with a crooked counterparty.
And yet, a recent estimate in a 2009 paper on CSR reporting and the cost of equity capital, suggests that hundreds of large US firms, comprising as much as 10% of the value of the publicly traded US market, produce CSR reports.
Owning a home with some equity can be a low cost source of credit.
Once again, China and Brazil dominate the list of stocks trading at a discount to their peers, or having declined enough in the last several trading sessions to reduce the cost of acquiring equity in the company.
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Analysts have been expecting a takeover of Alltel for several months, and while a strategic buyer like Verizon (nyse: VZ - news - people ) may well have been able to achieve more cost savings than private equity buyers, rival suitors may have been put off by the fact that months of bid speculation had lifted Alltel's share price well out of reach.
This is in general much less dilutive than the cost of capital of venture equity.
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Historically, the general partners of private equity funds just held their portfolio at cost, but last year they were forced by new accounting rules to mark their holdings to market.
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For what it's worth, the 2013 target for return on equity was more than 15% and the cost:income ratio supposed to be less than 50% by then.
The cost of insuring against bad outcomes in equity markets, at least as measured by the Chicago Board Options Exchange's VIX index of volatility, has been rising in recent days.
Indeed, the recent Attachmate-Novell merger represents cost-cutting play as opposed to the equity-friendly growth story pitched by Asurion.
Strikingly, over the past year, return on equity fell from 14% to 12% and the cost:income ratio rose, from 56% to 59%.
When their confidence returns, strategic buyers are generally likely to outbid private-equity firms and hedge funds, because integrating industries brings cost reductions and other synergies that are less easily garnered by financial buyers.
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"I expect everybody will jump on the bandwagon now, " said Richard Bove, equity analyst at Rochdale Securities, who thinks that the cost to Goldman of defending lawsuits could be enormously expensive over the next few years.
Not exactly news many equity analysts would be cheerful about today, particularly with serious cost overruns afflicting fiddly LNG developments globally.
Was Bernie's original sin misplaying the cost of carry game or writing covered options against equity positions that headed south too fast and far?
If a buyback raises the debt-to-equity ratio, it can lower the firm's overall cost of capital (because in most countries interest payments, unlike dividends, are tax deductible).
Boeing has also outsourced some work in Kansas, after selling one of its main factories to a Canadian private-equity firm, from which it buys fuselage sections at lower cost than when it owned the factory.
The financial crisis cost the American people trillions in investment losses, home equity declines, and unemployment and lost wages.
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We're talking the same cost as a home appliance vs. a home-equity loan.
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