Someone is starting a new company, is looking for investors, and needs to know what is the average rate of return to give the investors on their money. Where would this information be found?
2007-01-16 09:24:07 · 2 answers · asked by sim24 3 in Business & Finance ➔ Investing
It depends on many things
One thing is for sure, the return may NOT be lower than the Treasury bonds, the risk-free investment, currently about 4.75% per year.
So a 10 to 20% per year may sound reasonable for a new business, very generically speaking, you know.
2007-01-16 10:57:46 · answer #1 · answered by Carlos G 3 · 0⤊ 0⤋
This can't be "found," it needs to be figured based on:
-The industry the business is in
-The profit margins
-Ownership
-Time to break even
The return on investment is based on many issues. Talk to an accountant or a business professional.
2007-01-16 10:32:08 · answer #2 · answered by infobrokernate 6 · 0⤊ 0⤋