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Focuses on the move of the author to compute and analyze rate of return. Claim of the author on the lack of attention given to the rate of return; Role of rate of return as basis of determining changed needs of investor and consumer; Use of any rate of return as payment for three services: interest, assumption of risk, and the cost of raising capital; Emphasis of the author of the desirability of a flexible rate of return.

The article focuses on the concept of continuity and the rate of return. An economist describes the rate of return with the rate of profit at a switch point. With the same wage rate, net profit per man is higher, therefore the cost of capital equalizes the rate of profit. A more schematic treatment of continuity would allow to say that yet small, the difference between two adjacent wage-rates, there is always one method that is eligible to both, with the suitable pair of rates of profit and patterns of prices. A variation in wage rate brings a different set of prices into play. The difference between these two concepts arises from the difference in the arguments in which they occur. The one-commodity economy was devised to allow the neo-classical allegory in which the rate of profit equates to the marginal product of capital.

The shift in emphasis from sales volume to profitability as a measure of field sales management marked a real forward step in marketing management. One further step IS necessary. The measure of effectiveness of business management should be return on investment (ROI), and not merely sales volume produced or profits as a percentage of sales. The field sales manager should be evaluated on the return on investment he produces in his segment of the business. The author believes that attention to ROI will not only result in harmonizing the objectives of the field sales organization with the over-all objective of the company, but will also equip field sales management with an effective businessman's tool for decision making. [ABSTRACT FROM AUTHOR]

The purpose of this paper has been to present and exemplify a new and alternate method of return assessment. The method does have computational and mathematical advantage. It is also believed to have analytic advantage in that it is less susceptible to manipulation by base selection and more closely associated with performance measures which are relatively well defined. [ABSTRACT FROM AUTHOR]

In summary, this paper has illustrated the application of a potentially useful decision criterion to the selection of a security portfolio where borrowing and lending is permitted, I look forward to further refinements. [ABSTRACT FROM AUTHOR]

This study examines empirically the determinants of the rate of return on common stocks for ten cross-sections of 86 common stocks for the years 1958-1967 in a multiple regression analysis. Theoretically, the common stock rate of return under investigation, y, is defined as the ratio of the expected income associated with a particular equity to the market value of that equity. Empirically, this rate is represented by the logarithm of the ratio of a weighted average of past annual share earnings to current market value of the share, r = log y. The empirical rate of return, r, is postulated to be a linear function of two groups of variables: a corrective group and an explanatory one. (1) The corrective variables are employed to attenuate errors involved in the measurement of the empirical representation of expected income in the numerator of the rate of return. (2) The explanatory variables are presumed to represent factors which exert a real influence on the relative desirability of stocks. They are employed to provide an explanation of the rate of return based on preferences and aversions of people in the market to various attributes of common stocks. [ABSTRACT FROM AUTHOR]

A graph similar in concept to the conventional profit-volume graph can be used in capital investment planning and can be especially useful in the analysis of relatively complex investment situations. The net discounted cash flow line for the most profitable investment candidate crosses the expected cost of capital line or zone at the highest point. In a large number of investment situations, this line will also cross the internal rate of return line at the highest discount rate and will be above all other discounted cash flow lines at all points. There are also investment situations in which the discounted cash flow lines for the various alternatives will cross. The line for the most profitable alternative does not necessarily lie to the right of the other lines when it crosses over the internal rate of return line. It will, however, be the highest line when it crosses the expected cost of capital line or zone. The line of limitation can be used to predict the cost within reasonable limits.

In this article authors examines the relationship between industrial concentration and corporate profit. They try to find out whether the critical level of concentration can be defined, and whether increased concentration above the critical level significantly increases profitability. Economic theory provides some guidelines in selecting a measure of profitability but it is unable to indicate, unambiguously, the best definition. Some economists have argued that the rate of return on some measure of invested capital is theoretically the most appropriate measure of allocative efficiency. Authors remark that if advertising is associated with concentration the relationship between the price-cost margin and concentration could be spurious. Another drawback of the price-cost margins is the fact that they are available for only selected years and therefore it is not possible to average these margins over a sufficiently long period of time to test adequately the long-run theoretical relationship.

The article presents information on investment criteria and the cost of capital. According to elementary economic theory, profit is maximized when marginal revenue equals marginal cost. By adapting this doctrine to the capital budgeting situation, we get the theory that a company's investment program should be expanded to the point where the return from the last dollar invested equals the cost of raising that dollar. This suggests that a rational decision to accept or reject a particular investment opportunity can be made consistently. Unless the rate of return exceeds the cost of raising funds in the capital market and offer should be rejected.

The Payback Period has been dismissed as misleading and worthless by most writers on capital budgeting at the same time that businessmen continue to utilize this concept. This paper seeks to identify the problems which businessmen try to solve by use of the payback period, so that better tools can be provided for solving these, since neither the present value nor the internal rate of return does so. In the course of the analysis the payback concept is considered in its role as a criterion versus a payback constraint, payback and liquidity of capital assets and the liquidity requirements of the firm, payback as a break-even concept, and payback as crude measure of the rate of resolution of uncertainty. While payback is not advocated for capital investment decisions, the reasons for its popularity need to be understood before it is possible to develop superior alternatives. [ABSTRACT FROM AUTHOR]

This article presents information on financial accounting. The net realizable value of an asset is defined as the maximum net amount, which can be realized from the disposal of that asset within a short period of time. Net amount is defined as the selling price less disposition costs including tax effects discounted to the point of measurement. Basically, the issue is whether or not society is better served by the valuation of assets for public reporting at the cash they command upon sale or at the cash required to have them available for use by the firm. It might appear that under pure and perfect competition, with equally well-informed actors, the gap between the net realizable value and the replacement cost would be minimal and could be ignored. This is not the case due to the existence of frictions in the market place, such as commissions, transportation costs and the like. A stronger argument favoring net realizable value is based upon the frequent reference by statement users to a rate of return computation. The measurement of assets influences both elements of this computation since this measurement affects the denominator directly and the numerator through the depreciation charge.

The article provides various clarifications on the previous study about investment criteria and capital intensity. The author intended to clarify the issues on the right method of allocating investment which is to choose the investment pattern that would be selected by the market mechanism, the model presented in the previous study that divided wage and profits, establishing reinvestment as an independent criterion wherein assumption that all profits are reinvested must be discarded, the reliability of the reinvestment criterion, the emphasis on reinvestment which yielded an argument for investment in more capital-intensive industries than would be indicated by a pure market calculation, the implications of the thesis for another investment criterion and social marginal productivity.

This article presents the author's reply to a critique of his study on the relationship between the rate of return to stockholders and the returns earned from equity capital. The author stated that Robert Stonebraker argues that a model of the regulated firm should have management trying to maximize stockholders' total return. According to the author if one accepts Stonebraker's model it is clearly untenable to make assumption that the firm is guaranteed with earnings at an allowed rate. The author implies that without empirical studies, a profit maximand, an E/S maximand and rate of return maximand does not accurately describe the regulated firm.

Anti-deflationary monetary policy, where it can be made effective, results in a large private investment and a low real rate of return, compared to a smaller volume of private investment and a higher real rate of return when deflation is checked by budgetary policy. If the antideflationary budgetary policy is carried out by increased expenditure there is more real government expenditure, either on current account or on investment account, while if it is carried out by decreased taxation the chief effect is increased Individual expenditure. Ideally, one would like to determine the volume of government expenditure, both on current account and on capital account, in accordance with an appraisal of the productivity of the public expenditures compared with that of expenditures in the private sector. One would also like to determine the degree to which government outlays are financed by taxes by a deliberate policy decision as to how much of a total capital heritage should be accumulated for future generations in the form of public assets in excess of the public debt. With budgetary policy thus determined, it would fall to monetary policy to handle the stabilization of the economy. Unfortunately, it appears that monetary controls alone will be insufficient unless our economy is subjected to some drastic overhauling in the direction of establishing a long-term rising trend of prices and high money interest rates as a permanent norm.