Recently, one of my finance students asked me about the rate of return. I said, Sure!! Why not? But after a couple of minutes, I decide to write about it. Since I know many of you struggle with the topic, thus, take the online finance assignment help. So, isn’t it good for all to know more about this finance concept?
In recent years, finance has evolved itself. So, students are more concentrating on this subject.
Why do you choose finance subject for your career? Is it because this field will pay you more than others? Or do you have a specific interest in this subject? Well, it may be both. You can arise interest in something when you know the benefits of it.
If you are searching for someone to do my finance assignment, read this blog. Let’s discuss the rate of return. I hope you can complete your finance assignment.
How Will You Calculate the Rate of Return?
I believe most of you know the meaning of rate of return. But before moving ahead, let’s refresh your knowledge.
The rate of return is the minimum profit that the investor is expecting to get. A single person can’t run a company. It needs a lot of funds. So, investors invest these funds and get a return in the form of profit.
Now, you may be wondering how do the investors expect a return? How do they calculate it? What if you need to do a finance case study assignment? So, how will you calculate the expected rate of return? Will you directly take the online finance assignment help? Or try to calculate it by self?
Thus, to calculate the rate of return, you need to consider some factors. So, these factors are:
- Risk of the investment
- Time
- Inflation rate
- Liquidity factors
The important one is a risk. Firstly, try to understand the case study. In this, analyze the risk level with investment. Also, if there is a high risk, the company will probably get a high return. On the other hand, if there is low risk, investors will get less return.
So, once you analyze these factors, use the following methods to calculate the rate of return.
- The dividend-discount model (Gordon growth model)
- The Capital Asset Pricing Model (CAPM)
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Is the Rate of Return Affect the Business?
As per my experience and practical exposure to the subject, ROI greatly affects a business. You must be wondering how? Well, if you read the case study deeply, you see business runs with the aim of profit and wealth maximization. Am I right? Why or why not?
ROI helps the investors in knowing their expected return. So, there is a greater chance of more investment in a business. No one wants to invest where he will not get any return. Thus, the rate of return affects the business positively and negatively.
On the positive side, a company will get a lot of funds. These funds can help them in growing business. On the other hand, if the ROI of a company is not high, fewer investors will invest, and the firm will not reach its desired state.
Thus, if you are writing an assignment and still face any issues, taking finance assignment help is the best way to learn more about the concepts. In this way, you can get more information about this and any other finance topic.
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