Pretax rate of return

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Pretax rate of return

Gain on a security before taxes.

Pretax Rate of Return

The rate of return on an investment before capital gains or other taxes. Most of the time, when one sees a calculation of the rate of return it is the pretax rate of return. For a tax-free investment, the pretax and post-tax rates of return are identical.
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This well generates a pre-tax rate of return in excess of 70% at current pricing (based on an estimated completed well cost of US$9 million).
35% --financial assets 0% --inventories 0% Real interest rate r 5% Inflation rate [pi] 2% Pre-tax rate of return p 20% Source: Devereux & Griffith (2002) TABLE 2.
Just compare the current pre-tax rate of return to the return an investor would otherwise seek.
7 percent pre-tax rate of return allowed by Ofgem on investments in local electricity networks was below the 5.
Next, compare that scenario with rolling over the stock into an IRA, selling it tax-free inside the IRA, assuming a suitably higher pre-tax rate of return, and paying taxes on the mandatory distributions starting at age 70 1/2.
Such an increase distorts the international pre-tax rate of return differentials and affects investors' decisions regarding where to invest.
That is, take the mutual fund with the highest pre-tax rate of return and pair it with the mutual fund with the second highest pre-tax rate of return.
Gravelle (1994) characterizes a tax rule as neutral when an investment's after-tax rate of return equals the product of its pre-tax rate of return and 1 - t, where t is the statutory tax rate.
It confers a post-tax rate of return on saving equal to the pre-tax rate of return.
5% annual return, the pre-tax rate of return earned on stocks from 1926-1997.
Assume Bill's pre-tax rate of return is eight percent while his after-tax rate for the distributions is 43% (Federal and state tax), and his tax rate for capital gains is 32%.
25 per mcf), the company's estimated pre-tax rate of return from a 6.