pretax yield

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Pretax Yield

A return rate on an investment before accounting for either income taxes or capital gains taxes. The pretax yield is not as useful for determining yield as the after tax yield, particularly given the fact that some investments are tax-exempt.
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pretax yield

The rate of return on an investment before taxes have been considered. As with other measures of yield, pretax yield is usually stated on an annual basis.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
RERC's required pre-tax yield rates declined 10 basis points for the office, industrial and apartment sectors to 8.6 percent for office, 8.3 percent for industrial and 7.4 percent for multifamily real estate.
When analyzing the sector's investment return potential, industrials netted a 8.5 percent pre-tax yield, just below the national RERC Portfolio Index of 8.6 percent.
Real Estate Research Corporation's fourth quarter 2005 required pre-tax yield rate for the sector increased 10 basis points to 8.4, the first increase in four years.
I find that the average pre-tax yield on OMPS is higher than that of other preferred stocks and lower than the average pre-tax yield on debt, after controlling for differences in voting rights and risk.
The assumed pre-tax yield at the date of purchase is 10.77% per annum based on an assumed prepayment rate of 5 CPR and assumed losses of 100 basis points per annum on the outstanding principal amount of the loans (the "Base Case").
Four modeling equations were accepted in determining the outcomes of after tax IRR, after tax yield, internal rate of return, after tax yield, pre tax IRR, and pre-tax yield. The analysis of syndications produced five equations with dependent performance variables, and two equations for terminal outcome variables.
Pre-tax yield expectations for apartments average 11.0 percent for the third quarter, going-in cap rates 8.6 percent, rental growth 3.6 percent, and expense growth 3.4 percent.
Y = the equivalent pre-tax yield on a taxable bond for the investor's holding period
if the dollar were instead saved in a TDV, the pre-tax yield would be $6.73 ($4.04 after taxes) at the end of 20 years; the $1 would generate an after-tax income stream of $0.40 ($6.73 X 0.061 per year thereafter.
This assumes that the pre-tax yield on the growth investments is equal to the pre-tax yield on the taxable investments.