May 2020
Beginner
416 pages
9h 6m
English
Equity capital is money provided in exchange for ownership in the company. The equity investor receives a percentage of ownership that ideally appreciates in value as the company grows. The investor may also receive a portion of the company’s annual profits, called dividends, based on his ownership percentage. For example, a 10% dividend yield or payout on a company’s stock worth $200 per share means an annual dividend of $20. The typical equity investor wants the following minimum returns.

Thus, the investor expects a minimum return of 5 times his money in 5 years, which results in a cash on cash return of 5X, ...
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