what is meant by fitst return and annual return?
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Answer:
The revenue an investment generates over a year as a percentage of the amount of capital invested. ... For example, if one invests $1,000 and receives $150 in the first year of the investment, the rate of return is 15%, and the investor will recover his/her initial $1,000 in six years and eight months.
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First return refers to a tax return for the first year of tax, including a timely amended return for that year. The phrase "first return" means a return for the first year in which the taxpayer exercises the privilege of fixing its capital stock value for tax purposes.
The annual return is the return that an investment provides over a period of time, expressed as a time-weighted annual percentage. Sources of returns can include dividends, returns of capital and capital appreciation.
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