Cash- on- Cash Return. A percentage that measures the return on actual cash invested in an income producing property otherwise known as the equity dividend rate. It is one of the most widely used rates of return to measure an income propertys financial performance for the first year of ownership. It is often used to evaluate the cash flow from income producing assets. The cash-on-cash return is calculated by dividing the before tax cash flow by the amount of cash invested (down payment) and is expressed as a percentage. The cash-on-cash return is only one of several very important return ratios that measure the profitability of an income producing property.
Posted on: Mon, 27 Jan 2014 04:17:50 +0000
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