This article examines the historical trend in community bank returns on equity (ROE) over the last 10 years and highlights the gap between current and historical pretax returns
Researchers in both public finance and financial economics have studied whether tax rules have a pronounced effect on asset pricing and the pretax returns
on various financial assets.
Brennan's (1970) model of these tax effects indicates that risk-adjusted pretax returns
should be positively correlated to dividend yields.
The result is that an investor's aftertax returns can be significantly lower than the fund's advertised pretax returns
Companion HealthCare has a good earnings profile with pretax returns
Lyon advocates reducing or eliminating tax preferences that do not produce social returns in excess of their pretax returns
as the most direct alternative to the corporate AMT for improving efficiency.
As Figure 2 shows, production businesses can deliver from 45 percent to 135 percent pretax returns
on equity, depending upon the leverage ratio of the company and the all-in cost of production.
Planning suggestion: Corporations subject to the AMT may want to encourage dividend-paying companies in which they own 20% or more of the outstanding shares to sell their tax-exempt securities and invest in fully taxable securities that produce higher pretax returns
Given the volatile operating performance and negative pretax returns
on revenue and equity, the rating outlook has been revised to negative.
The Garland results found that the typical investor received only 41% of the preexpense, pretax returns
of the index.
This superior performance is evidenced by the surplus lines composite's better-than-average pretax returns
on net premium earned and calendar-year combined ratios over a five-year period.
past five years, averaging pretax returns
on revenue of 28.