cash-on-cash return definition

cash-on-cash return

Measure of yield on an investment in securities. Computed as the ratio of the annual income from an investment to the amount invested, it is applied usually where it is difficult to estimate the market value of the investment or where no resale-market (secondary market) exists. See also current yield and yield to maturity. Formula: Annual income from an investment ÷ Amount invested.

cash-on-cash return is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.

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