Then, Commerce prescribes a proper amount of profit that firms selling the subject product in the non-market economy should be earning, if they were operating in a market economy, again by reference to the profit experience of chosen firms in a similar industry in the other country.

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And Volkwagen AG, one of the last mass-market car makers still earning money in the region, warned of flat operating profit compared with 2012 on intense competition this year.

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So by borrowing money at the holding company level at, say, 10% pretax, Catacosinos and his investors can put it to work earning 125 basis points more, aftertax, at the operating company level with nary a risk.

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Right now, Mr. Dixon says his fund is earning a yield of 7% on his rental portfolio after accounting for operating expenses.

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