Ask Experts Questions for FREE Help !
Ask
    Classical Guitar's Avatar
    Classical Guitar Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 5, 2006, 01:42 PM
    Rate of Return
    Would the normal rate of return be the same in all industries? Would it change over time?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Nov 5, 2006, 03:09 PM
    No and yes.

    No, every industry has their own normal rate of return. For example, in the retail business, it could be 40% where as in the steel industry it could be 12%. The numbers re just examples, I don't know the exact industry averages.


    Yes, it can change over time. An industry that was once unique like the photography industry had a huge rate of return on cameras, now, with digital cameras, the rate of return on cameras is far lower. That is why they have branched out into other areas as well.
    sank's Avatar
    sank Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Nov 4, 2007, 05:55 PM
    Would the normal rate of return be the same in all industries? Would it change over time?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Rate of Return [ 2 Answers ]

:) A 2 year maturity bond with face value of $1,000 that makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to marurity at the end of the year is a. 6% b. 8% c. 10% :)

Return on Assets & Return on Equity [ 1 Answers ]

Question... Lily Cosmetics has annual sales of $500,000,000. They maintain a net after tax profit margin of 5% and they have a sales-to-assets ratio of 4. A) What is the Return on assets? B) If the debt/equity ratio is 0.5, what is the Return on Equity?

View more questions Search