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Search results for 'return'

November 13, 2017

A total return equity swap is…

…a contract for a series of exchanges of the total return on specified asset in return for specific fixed or floating payments. Similar to the short sale against the box, investor is fully hedged and earns money market rate return. Because a derivative dealer is involved the return is less than short sale against the […]

October 31, 2017

Returns Based Taxes: Accrual Equivalent Return

Portfolio Size (1 + Rae)^n = After-Tax Accumulation Solve for Rae, the Accrual Equivalent Return Then solve for Tae, the Accrual Equivalent Tax Rate r(1 – Tae) = Rae

October 31, 2017

Returns Based Taxes: Future Accumulation

FVIFtaxable = (1 + r*)(1 – T*) + T* – (1 – B)tcg r* = Annual After-Tax Return n = number of years T* = Effective Capital Gains Tax Rate B = Cost Basis as Percentage tcg = tax rate on capital gains

October 31, 2017

Returns-Based Taxes: Effective Capital Gains Tax Rate

T* = tcg(1 – pi – pd – pig) / (1 – piti – pdtd – pcgtcg) tcg = tax rate on capital gains pi = percentage of return from interest pd = percentage of return from dividends pcg = percentage of return from capital gains ti = tax rate on interest income td = […]

October 31, 2017

Returns-Based Taxes: Annual After-tax Return

r* = r(1 – piti – pdtd – pcgtcg) r = rate of return pre-tax piti = % of portfolio return from interest times tax rate on interest pdtd = % of portfolio return from dividends times tax rate on dividends pcgtcg = % of portfolio return from capital gains times tax rate on capital […]

October 31, 2017

Returns-Based Taxes: Wealth Tax

FVIFw = [(1+r)(1-tw)]n r = rate of return tw = tax on wealth (annual) n = number of periods (usually years)

October 31, 2017

Returns-Based Taxes: Cost Basis

FVIFcgb = (1+r)^n(1-tcg) + tcgB r = rate of return n = number of periods (usually years) tcg = tax rate on capital gains B = cost basis as a percentage

October 31, 2017

Returns-Based Taxes: Deferred Capital Gains

FVIFcg = (1+r)^n(1+tcg) + tcg

October 31, 2017

Returns-Based Taxes: Accrual Taxes

FVIFi = [1+r(1-ti)]^n

June 1, 2016

Expected Return on Plan Assets

Under U.S. GAAP assumed long-run rate of return on plan assets is used to smooth the volatility that would be caused by using actual returns. Under IFRS expected rate of return on plan assets is implicitly equal to the discount rate used for computing PBO.