Much like Manhattan apartment brokers who resist putting their best properties on a central listing service, PE firms use performance measurements like multiple of investment or internal rate of return that make it virtually impossible to compare one fund against another unless they started the same time and have had similar cash inflows and outflows.
Governments are also under tremendous pressure to keep their pension fund rate of return high: the lower the rate of return on investment, the greater the pension obligations become.
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We can analyze this annuity purchase like an investment and calculate an internal rate of return (IRR).
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This eases the cash flow of a strapped business, and the time value of money makes such investment yield a higher (after-tax) rate of return.
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This way capital gains and dividends will be taxed at a top rate of 15%, whereas the investment return on deferred pay is all eventually taxed as ordinary income at a top rate of 35%.
The greater the spread between the high-interest debt and the rate of return on investment, the greater the financial advantage for paying off the debt first.
It is impossible for any one manager to significantly add value and it seems likely the vast number of managers will result in, at best, a market rate of return net of fees, with significantly greater investment and operational risk.
According to a 2010 McKinsey report Lions on the move, the rate of return on foreign investment in Africa is higher than in any other developing region.
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The down-side is that if you look to another type of investment, the stock market for example, that offers a potentially higher rate of return, then the likelihood is that it will come with a higher rate of risk attached to it.
But he said it is a different situation when one approaches asset class as a fundamental investment and add commodities to achieve a certain rate of return or Sharpe ratio.
The good news is that a good rate of return on your college investment can be found on plenty of campuses across the country, and a lot of that depends on you and your individual experience.
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When asked to rate expertise and likeliness of return on investment, projects with female names were consistently rated less viable.
On this measure, then, American shares in the aggregate are paying a lower rate of return than a perfectly safe alternative investment.
In February last year, with the merger aborted, all change: the private-client and asset-management side had a glowing future, growing faster than the investment bank up to 2003, and with twice the rate of return.
Following the Icelandic crisis the council renegotiated the terms of the Dexia investment, accepting a lower interest rate in return for the government guarantees.
The banks profit from investing in solar in two ways: They get tax advantages (the investment tax credit) as well as a single-digit rate of return.
The second result from a rise in capital gains taxes is that it would change the return on investment which would lower the overall rate of saving and investing and as a consequence lower the overall capital investment which in turn would lower GDP growth and expansion.
Eventually, when interest rates elevate their multi-billion dollar investment portfolios, state mandated reserves, must throw off a higher rate of return.
Similarly, in Galveston, Texas, where local government workers in three counties opted for a personal savings and investment alternative to Social Security in 1981 as well, the annual rate of return fell by about half at the lowest point of the financial crisis.
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If I can open a frozen yogurt stand for 10, 000 dollars and get a 10% rate of return, then I will prefer the yogurt stand investment to a bond of similar risk which is offering 6%.
First savers are receiving a low rate of return on investing in short term government bonds because such investment is not economically productive.
My worst investment was a global technology fund that actually resulted in around a 400% rate of return with just around a one year holding period.
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At current prices, that would give the Cononish project a rate of return of about 37% before tax and see the initial investment repaid within 26 months of the start of production.
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Further, when averaging the strategy's two ways of estimating shareholders' expected rate of return, shareholders can expect to earn 17.8% annually on their investment, which is very strong.
Investment sage Warren Buffett recently said now is a good time for investment pools to buy thousands of residential homes, fix them up, and rent them out for a good rate of return.
Whereas income is to some degree guaranteed, investment income is decidedly not guaranteed, and in the case of hedge funds they only pocket returns after hitting a rate of return demanded by their investors.
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