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What is the difference between return on capital and return on investment?
Wiki User
∙ 10y ago
return on capital = earnings before interest and tax / capital employed * 100
Wiki User
∙ 10y ago
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What is the difference between a high and a low tolerance for risk?
It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.
What is the difference between return on investment and return on assets?
They are one and the same and they are used interchangeably.
How is ROI or return on investment calculated?
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
Difference between retrun on equity and return on capital employed?
return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).
Method of evaluating capital investment proposals that ignore present value?
internal rate of return
Difference between marginal efficiency of investment and marginal efficicency of capital?
MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment its known as?
The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment is known as the capital gain or loss. When the capital gain or loss is then compared to the initial investment (through division), the result is the capital gains yield or return on investment (assuming there are no cash flows such as coupon payments or dividends).
What is the difference between investment and expenditure?
An investment you expect a return, with the other, you don't.
What is the difference between a high and a low tolerance for risk?
It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.
What is the difference between return on investment and return on assets?
They are one and the same and they are used interchangeably.
How do you calculate return on capital?
The way to calculate the Return on Capital (ROC) or Return on Investment (ROI) is dividing net earning between the total capital. The result is multiplied by 100, and you get the percentage.
What is difference between market capital and turnover?
Market capital is teh total turn over of the market in a perticular period .Where as Turn over is the single business activity"s investment and return .
How is ROI or return on investment calculated?
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
What is the difference between returns and profit?
return is calculate against investment. profit is calculte against cost.
Difference between retrun on equity and return on capital employed?
return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).
How would you describe the cost of capital?
The minimum rate of return the company must earn to be willing to make the investment. It is the rate of return the company could earn if, rather than making the capital investment, it invested the money in an alternative, but comparable, investment.
What is the difference between yield and coupon rate?
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
