equity yield rate

Definition

A measure of returns on an investment's equity portion. It is the ratio of earnings in relation to the amount of equity invested. The earnings from the investment are computed by taking into consideration interest expense but not income taxes. The equity yield rate is computed as earnings on equity/amount of equity.

Use equity yield rate in a sentence

The equity yield rate was coming in at 5%. They were happy with this return on investment they were receiving for the money they invested.

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The equity yield rate was really cool to me and I was very happy with what the measurement told me, because it showed we were doing it right.

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A rational investors seeks investments that have a higher than average equity yield rate despite the fact that such investments are hard to come by and require large amount of capital in order to be worthwhile.

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