What is the rate of return required in order to invest in Dubai? Essay
Return on Investment (ROI) is the term used to address cash or income gained from invested monies. It is also called as the Return on Equity (ROE). The return can either be in the form of currency amounts or in percentage to be had by dividing the return by the equity installed. Characteristically, returns are computed based on an annual return and thereby consigned to as the annual rate of return. Calculations of Rate of Return:
a) Amount Received / Amount Originally Invested = Rate of Return b) Return can also be computed on entirety of capitalization (money owed and equity). Such a return would be calculated as follows: c) Amounts Received / (Equity funds + Debt Capital provided) = Return on Total Capitalization These returns can be computed after the statement, as above, or the method can be used to estimate the amount that can be invested and still yield the required rate of return.
When taking into account the concession rate or mandatory return on investment, it is useful to learn the chronological returns of a mixture of investments. Keep in mind that the compulsory rate of return on any venture reflects the severity of risk of the investment. Risk
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