(6) The asset value of the firm, denoted by V, follows the lognormal diffusion process, dV=(mu-beta V,dt+sigmu-beta Vt},dt+sigmahere μ is the instantaneous expected rate of return on the firm gross of all payout, (sigma^{2}) is the instantaneous V,dB_{t} of the return on the firm, (B_{t}) is the standard Brownian motion.
I calculated it roughly; if there's a 10% return in the market, a hedge fund would have to give you 17% before fees, assuming a 20% carry on gross return, a 2% annual fee, and half the gain being long-term, half short-term.
Its financials may have disappointed some folks last quarter, but long-term they look pretty good to me: no long-term debt, a five-year average return-on-equity of nearly 30% and gross margins in the low-to-mid 30% range.
So, at current prices, the gross return on capital before interest, depreciation and amortisation is at most 3.2%, barely equal to the rate of interest on Australian government bonds.
Superior information has kept the company's gross return on auction sales close to 9% for the past seven years.
With regard to the gross return on investment (ROI), it should be highlighted that a large profitability ratio indicates a low level of insolvency risk.
With regard to the set of possible firm characteristics that may affect the auditor's opinion we considered firm's size (SIZE), its solvency and profitability, with these two factors being proxied by the firm's debt ratio (DEBT) and the gross return on investment (ROI) ratio, and the firm's ownership concentration.
The total median gross return on investment for films that failed was only $2.45 for each dollar spent," Walt Hickey wrote.
"The total median gross return on investment for a film that passed the Bechdel test was $2.68 for each dollar spent.
