Sunday, 29 July 2018

Increasing The Rate of Return On Own Capital Through Leverage Or Compounding


How do we increase the rate of return (ROC)/Yield on Capital on our own capital Mathematically?


1) Leverage

and/or

2) The Power of Compounding after Point X


What is acceptable and enough?

That is how we differ from each other?

The Mathematics of having enough!

Enough is relative and also subjective!

Cheem!


Unexpectedly Kep Corp increases 2018 dividends by 7 cts and SGX by 2 cts.

Estimated to end 2018 in about 7.7% total ROC even when capital is 100% recovered from the stock market.

Hmm .. power of compounding after Point X while own capital earning very low yield!








No comments:

Post a Comment