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 ?
Hypotheses 1 and 2 predict that OMPS pre-tax yields are higher than equally risky NMPS pre-tax yields and lower than equally risky debt pre-tax yields.
Model (6) in Table 2, Panel A presents the results of multiple regression tests for differences in pre-tax yields of debt, OMPS, and NMPS.
The mean risk-adjusted pre-tax yields from Model (6) Panel A can be used to estimate the implicit taxes on OMPS and NMPS as follows:
This study examines the risk-adjusted pre-tax yields of OMPS, NMPS, and debt issued by the same public utilities for evidence of implicit taxes.
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 yield advantage under the same pre-tax yields has dropped to 58 basis points under the revised tax law.
To demonstrate, recall that the pre-tax yields shown in Exhibit 1, which are representative of yields prevailing when auction rate preferred stock was introduced (August 1984), implied an after-tax yield advantage of 205 basis points.
Comparison of the Tax Advantage of Auction Rate Preferred Stock Relative to a Money Market Instrument Under Original and Revised Tax Laws Yield Auction Money Advantage Rate Market (basis points) Pre-tax yield 8.00% 10.0% 200 After-tax yield original tax laws 7.45%(a) 5.4%(b) 205 After-tax yield revised tax laws 7.18%(c) 6.6%(d) 58 Notes: The corporate tax rate under original tax laws is 46% versus 34% under the revised tax laws.