required rate of return definition
This definition has not yet been approved by a moderator.The minimum rate of return required by an investor to invest in an asset, given the assets riskiness. Required rate of return (RRR) is the minimum amount of money that an investor expects to receive from an investment. This amount takes into account several factors such as the amount of risk involved, inflation, liquidity and the duration of the investment. This article contains just a definition and optionally other subpages (such as a list of related articles), but no metadata. Create the metadata page if you want to expand this into a full article. Required rate of return [r]: A stipulated minimum acceptable value of a projects internal rate of return that is Home » Accounting Definitions Managerial Accounting » Required Rate of Return Definition.Annual Return over an Investment. Compound Annual Growth Rate. Mean Variance Analysis. Yield Definition. Target Return. Returns buoy usually be perverted victimisation occupation scheme or owed to whatever over-the-counter short-run weight. Furthermore, championing firms that determine not assert their effectuation currency rate definition to habitual, the RoCE material cannot be designed accurately. What is required? definition and meaning. Definition of required: Mandated under a law or by an authoritative entity. Internal Rate of Return (IRR) Definition Example | InvestingAnswers. Required Return Finance Definition. The required rate of return in finance refers to the minimum return investors expect based on the level of risk presented by an investment.
required rate of return - Investment Finance Definition.Companies do a required rate of return analysis before deciding to fund a new joint venture or to purchase a piece of equipment. Looking for the definition of REQUIRED RATE OF RETURN?This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: REQUIRED RATE OF RETURN. Definition of Required rate of return. Search Web Search Dictionary.In economics and accounting, the cost of capital is the cost of a companys funds (both debt and equity), or, from an investors point of view "the required rate of return on a portfolio companys existing securities". Use required rate of return in a Sentence.
Our business is requesting the highest possible required rate of return because we are a small, growing business, that hopes to get the most out of our potential investments. The required rate of return, defined as the minimum return the investor will accept for a particular investment, is a pivotal concept to evaluating any investment. In finance, return is a profit on an investment. It comprises any change in value and interest or dividends or other such cash flows which the investor receives from the investment. It may be measured either in absolute terms (e.g dollars) or as a percentage of the amount invested. translation and definition "required rate of return", Dictionary English-English online.In general, a premium is added to the risk free rate of return to reflect an investors required rate of return from that investment. Definition: The minimum expected yield by investors require in order to select a particular investment.Repurchase of stock Required minimum distribution (RMD) Required Rate of Return (RRR) Required reserves Required return. Required rate of return (rrr) read the definition required repurchase stock minimum distribution (rmd) how to calculate on stocksupdated april 19, 2017. The riskiness of the stock is for example, an investor who can earn annual return 11. required rate of return. A term used in evaluating business investments.Definition The required rate of return in a discounted cash flow analysis, above which an investment makes sense and below which it does not. Required Rate of return is the Rate of return the providers of funds can reasonably ask for given the level of risk of the project, company, venture, etc, they invest in.(See Chapter 19 The required rate of return of the Vernimmen). scholarship costs, represent an internal rate of return of 11.3 percent. Based on our In the pre-Promise period, we define a dummy that equals.NPV vs IRR Every business comes across a number of decisions to be made on of Capital Definition The cost of capital is the minimum return rate required. Примеры перевода, содержащие required rate of return Русско-английский словарь иПредложить в качестве перевода для required rate of returnКопировать The required rate of return in a discounted cash flow analysis, above which an investment makes sense and below which it does not.Definition 2. The rate of return needed to induce investors or companies to invest in something. It goes beyond just identifying the return of the stock is the beta coefficient for the stock, meaning it is the covariance between the stock and the market divided by the variance of the market Required Rate of Return RRR : read the definition ofHow To Calculate Required Rate Of Return Investopedia. The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project. The required rate of return (RRR) is used in both equity valuation and in corporate finance. Definitions and meanings of required rate of return.You are here: Home > QFINANCE Dictionary > Definition of required rate of return. Find out the Definition, Meaning and Explanation of required rate of return. noun the minimum return for a proposed project investment to be acceptable. discounted cash flow. You could continue to go to the web link that we offer and also ready to download Required Rate of Return Definition The Strategic CFO When many individuals are active to look for fro in guide establishment, you are quite easy to download and install. Your required rate of return is the return you consider when analyzing whether an investment is worth the risk. It would be nice if every investor achieved his required rate of return on his investments. In reality, this is not the case. What is required rate of return? Learn here with Sesli Szlk your source for language knowledge for a multitude of languages in the world. required rate of return - noun the minimum return for a proposed project investment to be acceptable. See also discounted cash flow. required rate of return synonyms, antonyms, English dictionary, English language, definition, see also require,requite,requirement,requisite, Reverso dictionary, English synonym, English vocabulary. 2. The minimum rate of return required by an investor, a stipulation that limits the types of investments the investor can undertake. For example, a person with a required rate of return of 15 would generally have to invest in relatively risky securities. Find out right now with a helpful definition and links related to Required Rate Of Return.The required rate of return is the minimum rate of return (expressed as a percentage) that an investor requires before investing capital. Required rate of return is the return required by an individual on any investment/asset. It depends upon the cost of capital and other factors like risk aversion of the investor, volatility of the return etc.Hence, this concludes the definition of Required Rate of Return along with its overview. The minimum rate of return that is deemed acceptable on investment proposals compared to the effortless and low risk rate of return.Link To This Legal Definition. Did you want to cite the REQUIRED RATE OF RETURN definition? REQUIRED RATE OF RETURN see HURDLE RATE. Learn new Accounting Terms. DEPOSITORY ACCOUNT are those accounts where assets e.g. cash or securities are placed on deposit in favor of the depositor.Definition (if known): required field. Rate of return can also be defined as the net amount of discounted cash Definition: Required Rate of return is the minimum acceptable return on investment sought by individuals or companies considering an investment opportunity. All you need to know about Required Rate of Return. Summary, forum, expert tips, powerpoints, videos. Description, explanation and definition. Definition: Required Rate of Return refers to the amount derived or expected to be derived from an investment.Example : In the current situation, price of Rajs share is 100000. His annual dividend is 1000 per share and his required rate of return is 10. Definition of required rate of return. The rate of return below which an investment is not worth making. This is normally calculated by looking at the cost of capital (the interest rate that would be earned by investing money elsewhere at a similar level of risk). What is the effective interest rate? What are some of the methods for evaluating capital expenditures? Why does the internal rate of return equate to a net present value of zero? Definition: Discount rate also called the hurdle rate, cost of capital, or required rate of return is the expected rate of return for an investment. In other words, this is the interest percentage that a company or investor anticipates receiving over the life of an investment. Definition: Required Rate of return is the minimum acceptable return on investment sought by individuals or companies considering an investment opportunity. The required rate of return for the Johnson account was well over the amount that was predicted. Tim saw that the required rate of return needed on the stock he was considering was just not there as seen over the last five years and he decided to pass up the opportunity. Required Rate of Return - the minimum rate of return acceptable by investors before they will commit money to an investment at a given level of risk. Click here to go back. ADVFNs comprehensive investing glossary. Money word definitions on nearly any aspect of the market. Stock market dictionary.The minimum expected yield by investors require in order to select a particular investment. Required rate of return is the rate of return demanded by an investor from an investment to compensate for the amount of risk involved.Definition: Required Rate of Return - Valuation information / Selling your corporation. RRR: Required Rate of Return. What does RRR mean? The above is one of RRR meanings.
It may have other definitions. Please refer to the end of this passage. Требуемая норма прибыли (REQUIRED RATE OF RETURN) — Минимально приемлемая норма прибыли на инвестированный капитал. Называется также минимально допустимой рентабельностью Rate of Return. Definition: A relative percentage method which measures the yield as a percentage of investment over the life of a project.Therefore, that 6 is viewed as a minimum attractive rate of return (or required rate of return). So, you can apply the following decision rule, to see if the Required Rate of Return is determined by the market for a particular security or asset at a given time. Issuers of fixed or variable coupon bonds must look at the rates offered by their peer institutions with similar credit ratings.