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.
Return on Capital. No Member shall receive any interest or draw with respect to its Capital Contributions or its Capital Account, except as otherwise provided in this LLC Agreement.
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...
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 the number of ROC Units that vest will be determined by linear interpolation. 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, 2021. 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, 2021, 2022 and 2023, and whether and to the extent an award vests, will be based on the average of such averages.
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.
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.
Return on Capital
