What is the equity dividend rate also known as?

The equity dividend rate is also known as the before-tax cash flow or cash on cash rate. This term refers to the ratio of the cash flow before tax generated by an investment relative to the amount of equity invested. It provides investors with a measure of the return on their equity investments without considering the effect of taxes, making it particularly useful for evaluating the performance of real estate investments.

This metric is critical in real estate since it helps investors understand the cash returns they can expect from their equity in a property. By focusing on the cash generated versus the total equity invested, it allows for more straightforward comparisons between different investment opportunities and insights into the property’s financial viability.

In contrast, the other terms mentioned refer to different financial metrics related to real estate or investment analysis but do not accurately describe the equity dividend rate. Each of them serves distinct purposes in evaluating investment performance, but they do not reflect the specific calculation involved with the equity dividend rate.