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Sfm little doubt

CA Final 597 views 3 replies

Hello Friends,

I have a small doubt in SFM. What is the difference between "Required Rate of Return, Available Rate of Return and Market Rate of Retun'?

According to me, Required Rate is that rate which investor wants to earn.

Available Rate is that rate which is actually provided by the co.

But What is Market Rate/Return? Is it available rate in the market or required rate in the market?

Please clarify me.

Thanks and Regards

Khushboo Goyal

Replies (3)

Khushboo,

 

as you rightly said...

the required rate is the rate which the investors want

available rate is the actual rate of earning of the company

but market rate is the normal industry earning rate

Thank you Ankit.

you are welcome...if you have any more doubts, feel free to ask..


CCI Pro

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