15 Rates every investor needs to know and understand.
Ranging from stocks and real estate to bonds. These rates will help you manage your investments.
1. 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲: Cost paid for borrowing money, expressed as a percentage of the total loan amount. x.com
Ranging from stocks and real estate to bonds. These rates will help you manage your investments.
1. 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲: Cost paid for borrowing money, expressed as a percentage of the total loan amount. x.com
2. 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 𝗥𝗮𝘁𝗲: Rate used to calculate present value of future cash flows in discounted cash flow analysis.
3. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗥𝗮𝘁𝗲 (𝗖𝗮𝗽 𝗥𝗮𝘁𝗲): Real estate valuation measure, calculated as Net Operating Income divided by property's current market value.
4. I𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗥𝗮𝘁𝗲 𝗼𝗳 𝗥𝗲𝘁𝘂𝗿𝗻 (𝗜𝗥𝗥): Discount rate that makes the net present value of all cash flows from a project zero.
5. 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝗬𝗶𝗲𝗹𝗱: Financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
6. 𝗥𝗶𝘀𝗸-𝗙𝗿𝗲𝗲 𝗥𝗮𝘁𝗲: Theoretical rate of return of an investment with zero risk, often based on government bonds.
6. 𝗥𝗶𝘀𝗸-𝗙𝗿𝗲𝗲 𝗥𝗮𝘁𝗲: Theoretical rate of return of an investment with zero risk, often based on government bonds.
7. 𝗛𝘂𝗿𝗱𝗹𝗲 𝗥𝗮𝘁𝗲: Minimum rate of return on a project or investment required by a manager or investor.
8. 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲: Percentage at which an individual or corporation is taxed on their income or profits.
8. 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲: Percentage at which an individual or corporation is taxed on their income or profits.
9. 𝗥𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗲𝗱 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 (𝗥𝗢𝗜𝗖): Measure of a company's efficiency at allocating the capital under its control to profitable investments.
10. 𝗥𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗘𝗾𝘂𝗶𝘁𝘆 (𝗥𝗢𝗘): Indicator of a company's profitability, calculated as net income divided by shareholder's equity.
11. 𝗥𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗔𝘀𝘀𝗲𝘁𝘀 (𝗥𝗢𝗔): Profitability ratio that indicates how efficiently a company uses its assets to generate profit.
12. 𝗪𝗔𝗖𝗖 (𝗪𝗲𝗶𝗴𝗵𝘁𝗲𝗱 𝗔𝘃𝗲𝗿𝗮𝗴𝗲 𝗖𝗼𝘀𝘁 𝗼𝗳 𝗖𝗮𝗽𝗶𝘁𝗮𝗹): Reflects the average rate of return a company is expected to pay its security holders.
13. 𝗚𝗿𝗼𝘄𝘁𝗵 𝗥𝗮𝘁𝗲: The rate at which a company's earnings are increasing annually, indicating business expansion.
14. 𝗖𝗼𝘂𝗽𝗼𝗻 𝗥𝗮𝘁𝗲: The annual interest rate paid on a bond, expressed as a percentage of the face value.
14. 𝗖𝗼𝘂𝗽𝗼𝗻 𝗥𝗮𝘁𝗲: The annual interest rate paid on a bond, expressed as a percentage of the face value.
15. 𝗬𝗶𝗲𝗹𝗱 𝘁𝗼 𝗠𝗮𝘁𝘂𝗿𝗶𝘁𝘆 (𝗬𝗧𝗠): The total return anticipated on a bond if held until it matures, including all payments and interest.
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