Maybank maintained its position as among the regions best capitalised banks as at end September 2018, with its CET1 ratio strengthening further by 9bps to 13.59% from 13.50% a year ago, and total capital ratio of 17.62% (after proposed dividend and assuming an 85% dividend reinvestment rate
) both significantly higher than regulatory requirements of 4.5% and 8.0% respectively.
Nevertheless, both methods may be incomplete in that they misunderstand the possibility of the reinvestment rate
their calculations are based upon.
As a result, the investment outlays, the reinvestment rate
and the ratio of capital expenditures to depreciation reach a stationary point/static equilibrium.
The 50 percent reinvestment rate
is derived by dividing the target growth rate of 9.5 percent with the company's return on capital of 18.9 percent.
The reinvestment rate
(s) is the percent of income that gets saved and reinvested--that is, what's left after taxes (t) and consumption (c).
HBL IMMF is exposed to reinvestment rate
risk, which has heightened lately on account of the trend in policy rate.
The bank's improved capital position reflects its high reinvestment rate
of 88.2 per cent for the bank's fifth dividend reinvestment plan (DRP).
We lead the nation in patents per capita and 5 percent of our local economy is plowed right back into R&D, the highest reinvestment rate
anywhere in the world.
Now, Berkley says in a conference call with investors, his top-two concerns are the reinvestment rate
on the company's portfolio and the risk of inflation.
However, NPV is unable to reflect the reality of construction market when the limitation on the use of free cashflow leads to violation of NPV's assumption that firm's opportunity cost is the same as reinvestment rate
Adjusted rate of return, often called "effective rate of return," is calculated by assuming that all of the investment's benefits (not only cash inflows but also tax savings) are invested at the "alternative reinvestment rate
." The alternative reinvestment rate
is the after-tax rate at which money can be safely invested.
In particular, the reinvestment rate
used to estimate free cash flows to the firm should be consistent with the stable growth rate.