Return on Capital Sample Clauses

The Return on Capital clause defines how the profits or returns generated from invested capital are calculated and distributed among stakeholders. Typically, this clause outlines the method for determining the amount of capital contributed, the rate or formula for calculating returns, and the timing or conditions under which returns are paid out. Its core practical function is to ensure transparency and fairness in the allocation of investment gains, thereby reducing disputes and aligning the interests of all parties involved.
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Return on Capital the Return on Capital for the Company is expressed as a percentage and is computed by dividing the Company’s net after-tax earnings for the relevant fiscal year by the Company’s Total Capital for the relevant fiscal year.
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Return on Capital. The issuance of Shares underlying the ROC Units identified on the cover page of this Agreement are subject to the satisfaction of an average annual return on capital metric during the Performance Cycle. If the average of the annual return on capital during the Performance Cycle is: ​ ● at least 8.75%, all the ROC Units vest; ● less than 6.0%, none of the ROC Units vest; and ● equals or exceeds 6.0% but less than 8.75%, then a proportional number of ROC Units vest. ​ Return on capital means adjusted funds from operations, as determined below, divided by average capital, as determined below. Adjusted funds from operations means funds from operations, determined in accordance with the National Association of Real Estate Investment Trusts definition, adjusted for straight-line rent accruals and amortization of lease intangibles, and adding and deducting gains and losses, respectively, on sales of properties. Gains and/or losses on property sales shall equal the sales price for a property less the purchase price, costs of capital improvements and costs of sale. Such return shall be calculated for each twelve-month period beginning July 1, 2024. Average capital is defined as stockholders’ equity, plus depreciation and amortization, adjusted for intangibles, and for each twelve month period during the Performance Cycle, shall be measured by reference to the quotient obtained by dividing (a) the sum of the capital as of July 1 and the following June 30 by (b) two. The average annual return on capital shall be determined for each twelve-month period beginning July 1, 2024, 2025 and 2026, and whether and to the extent an award vests, will be based on the average of such averages. ​
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Return on Capital. Loans from AIOP to the Venture shall accrue interest at the rate of ten percent (10%) per annum, compounded quarterly. Loans shall be interest only; provided, however, if the Venture has cash available for distribution to the Venturers after paying all accrued interest due and payable to AIOP, fifty percent (50%) of the remaining available cash shall be paid to AIOP to reduce the principal balance due on such loan(s) (the "Principal Reduction Payment"). After the interest on the loan(s) is(are) paid, and the Principal Reduction Payment is paid, then the net cash flow from the Project would be divided pari passu on a 50/50 basis between AIOP and Royal Palm. In the event of any sales of any Project or interests in the Approved Entities or loan restructurings, all net proceeds from each event would be paid to reduce loans (with respect to each Project) until such time as AIOP is fully repaid (with respect to each Project). Thereafter, any proceeds from such sales or loan restructurings shall be divided pari passu on a 50/50 basis to the Venturers.
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Return on Capital. (a) The Capital shall accrue Return computed and payable in accordance with the terms of the Receivables Purchase Agreement. The Capital shall become due and payable at the dates and times provided under the Receivables Purchase Agreement. (b) The Administrative Agent shall distribute, in accordance with Article VII, the Purchaser Basic Rent and all other amounts due with respect to the Capital paid to the Administrative Agent by the Lessee under the Lease from time to time.
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Return on Capital. The Return on Capital is the nominal pre-tax Return on Capital and is calculated by determining the post-tax Return on Capital and adjusting this to reflect the tax rate and franking credits as set out in this clause 3.4. The nominal post-tax Return on Capital is: Wpost = Re E + Rd D V V Where: Wpost is the nominal post-tax Return on Capital; Re is the cost of equity; E/V is the proportion of equity capital in total capital; D/V is the proportion of debt capital in total capital; and Rd is the actual cost of debt to the Access Provider. The post-tax cost of equity, Re, is determined using a capital asset pricing model (CAPM) method. That is: Re = rf + β(rm - rf) Where: rf is the risk-free cost of debt (based on 10 year Government bond rates); rm is the market rate of return; (rm - rf) is the market risk premium — the return of the market as a whole less the risk free return; and β is the systematic risk of the FOXTEL’s equity determined by the Access Provider. The conversion from a nominal, post-tax Return on Capital to a nominal pre-tax Return on Capital involves both the tax rate and the value of imputation credits. This effectively “grosses up” the post-tax cost of equity. The cost of debt does not require grossing up because in the Return on Capital equation above it is a pre-tax measure. The formula to calculate the pre-tax Return on Capital is: W = Re / (1-T(1-γ)) * (E/V) + Rd * (D/V) Where: W is the pre-tax Return on Capital T is the current Corporate Tax Rate; and γ is the value of imputation credits. Return on Capital is expressed as a percentage. The value of Wpost will be calculated by FOXTEL from time to time but at least every three (3) years. The pre-tax Return on Capital in T1 will be 20%, based on the following variables: (rm - rf) = 6% rf = 6.2% β = 1.8 E/V = 1 D/V = 0 T = 30% γ = 0.5 The value attributed to these variables in subsequent years will be selected by FOXTEL on a basis that is consistent with the values stated above. The beta will be determined as an asset beta and then converted to an equity beta. The asset beta will remain at 1.8 unless the following events occur: • On average, in the course of a year, more than 50 per cent of Australian television households subscribe to the service, in which event the asset beta will be redetermined. That redetermination will be conducted on a basis consistent with best practice as used by expert financial advisers. However, the redetermined value cannot be set below 1.1. • On average, in t...
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Return on Capital 
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Related to Return on Capital

  • Net Operating Income For any Real Estate and for a given period, an amount equal to the sum of (a) the rents, common area reimbursements, and service and other income for such Real Estate for such period received in the ordinary course of business from tenants or licensees in occupancy paying rent (excluding pre-paid rents and revenues and security deposits except to the extent applied in satisfaction of tenants’ or licensees’ obligations for rent and any non-recurring fees, charges or amounts including, without limitation, set-up fees and termination fees) minus (b) all expenses paid or accrued and related to the ownership, operation or maintenance of such Real Estate for such period, including, but not limited to, taxes, assessments and the like, insurance, utilities, payroll costs, maintenance, repair and landscaping expenses, marketing expenses, and general and administrative expenses (including an appropriate allocation for legal, accounting, advertising, marketing and other expenses incurred in connection with such Real Estate, but specifically excluding general overhead expenses of REIT and its Subsidiaries, any property management fees and non recurring charges), minus (c) the greater of (i) actual property management expenses of such Real Estate, or (ii) an amount equal to three percent (3.0%) of the gross revenues from such Real Estate excluding straight line leveling adjustments required under GAAP and amortization of intangibles pursuant to FAS 141R, minus (d) all rents, common area reimbursements and other income for such Real Estate received from tenants or licensees in default of payment or other material obligations under their lease, or with respect to leases as to which the tenant or licensee or any guarantor thereunder is subject to any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution, liquidation or similar debtor relief proceeding.

  • Cash Flow Owner acknowledges that the budget prepared by Manager, pursuant to paragraph 3(k), will contain a category labeled "Cash Flow." Owner agrees, in the event that the budgeted cash flow for the Property is "negative" in any month covered by the budget, to place sufficient funds in a bank account, or to permit Manager to transfer Owner's funds to such account, to make up the budgeted operating deficit. These funds must be placed in such account at least forty-five (45) days before the budgeted deficit is to occur.

  • Earnings In the event of a Divorce, the Couple agrees that each Spouse’s earnings during the marriage shall be owned by: (check one)

  • PRODUCTIVITY The Union shall place no limitations upon the amount of work which an Employee shall perform during the working day and there shall be no restrictions imposed against the use of any type of machinery, tools or labour saving devices.

  • Turn-Over After the occurrence and during the continuance of any Default (including the commencement and continuation of any proceeding under any Bankruptcy Law relating to any other Loan Party), each Guarantor shall, if the Administrative Agent so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the Secured Parties and deliver such payments to the Administrative Agent on account of the Guaranteed Obligations (including all Post Petition Interest), together with any necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Guaranty.