Equity Dividend Rate Calculator

Formula

The formula to calculate the Equity Dividend Rate (EDR) is:

\[ EDR = \frac{AC}{CI} \times 100 \]

Where:

(EDR) is the Equity Dividend Rate (%)
(AC) is the annual cash received ($)
(CI) is the total cash invested ($)

What is an Equity Dividend Rate?

The Equity Dividend Rate is a measure of the return on investment for equity investors. It is calculated by dividing the annual cash received from the investment by the total cash invested, then multiplying by 100 to get a percentage. This metric helps investors evaluate the profitability of their investments.

Example Calculation

Let's assume the following values:

Annual Cash Received (AC) = $10,000
Total Cash Invested (CI) = $100,000

Using the formula:

\[ EDR = \frac{10000}{100000} \times 100 = 10\% \]

The Equity Dividend Rate (EDR) is 10%.