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The money a company periodically pays out is called a dividend. The money a stockholder receives by selling a share of stock is simply a return on their investment. (This may be a profit or loss, depending on whether the stock price has gone up or down while they held it).

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14y ago

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What does a bank get in return for its investment in the Federal Reserve System?

In return for its investment, however, a member bank receives a 6 percent annual dividend and the right to vote in elections of directors of its Reserve Bank.


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 cut off point for accounting?

Businesses attempt to estimate the possible income received by certain transactions. They then compare this amount to the necessary rate of return on the investment. Every investment has a necessary return (usually enough so the company doesn't lose money in the investment). The cutoff point, therefore, is the minimum rate of return. If a company invests in something with a projected 15% rate of return, but the minimum rate of return is 20%, then the company is better off not investing.


What return can a company expect from its enterprise resource planning investment?

The return a company can expect from its enterprise resource planning (ERP) investment are impact and productivity. ERP is a internal and external system that integrates management of information across an organization.


How do you Calculate a Return on an Investment?

The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.


What is one of the risks of being a stockholder?

Stockolders are not guaranteed a return on their investments.


What is one of the risk of being a stockholder?

Stockolders are not guaranteed a return on their investments.


In finance what is rate of return?

In finance, the rate of return is a profit from an investment whereas the set rate determines the profit. For example, if an investor receives 10% for every $100 invested then the rate of return would be $10.00.


What is the difference between ROIC and IRR and how do they impact investment decisions?

ROIC (Return on Invested Capital) measures the profitability of a company's investments, while IRR (Internal Rate of Return) calculates the rate of return on a specific investment. ROIC helps assess overall company performance, while IRR helps evaluate the potential return on a single investment. Both metrics are important in making investment decisions as they provide insights into the profitability and efficiency of investments.


Can a company as claimed by Quantumfundsonline give return to 30 percent interest on investment?

It looks suspicious to me.


What is return of corpus?

Return of corpus refers to the original principal amount invested in a financial product or investment. It is the capital that an investor receives back at the end of an investment period, typically in fixed-income instruments or certain types of mutual funds. The return of corpus is distinct from any earnings or profits generated from the investment, which may be referred to as returns or yield. In essence, it ensures that the initial investment is preserved and returned to the investor.


What does return on investment mean?

Return on investment means that you initially invest money into something, say a company or a product and it is successful. Once they begin to make money, you would receive either your initial investment back or a portion of the sales from that item or business.