<URL:http://www.uwasa.fi/~ts/jkay/jkay.html>

Timo Salmi and Martti Luoma

Deriving the Internal Rate of Return from the Accountant's Rate of Profit: Analysis and Empirical Estimation

Published in The Finnish Journal of Business Economics 1/81, 20-45
Runeberginkatu 14-16
FIN-00100 Helsinki
Finland

This paper is reproduced at the University of Vaasa in the electronic format with the permission of The Finnish Journal of Business Economics. Copyright (c) 1981 by The Finnish Journal of Business Economics and the authors.

CONTENTS

  1. Introduction
  2. The Method for Estimating the Internal Rate of Return
  3. Testing the Model with Simulated Financial Statements
  4. An Application of Kay's Method on a Finnish Business Firm, and Directions for Further Research

Please use the following reference to this publication: Salmi, T. and Luoma, M. (1981), "Deriving the Internal Rate of Return from the Accountant's Rate of Profit: Analysis and Empirical Estimation", The Finnish Journal of Business Economics 30:1, 20-45. Also available from World Wide Web: <URL:http://www.uwasa.fi/~ts/jkay/jkay.html>.

* We wish to acknowledge with gratitude the contribution by Matti Heikkilä, Lic.Sc. (Techn.) and similarly thank Professor Reijo Ruuhela for his useful comments. Any errors and inadequacies are however, our sole responsibility. Kay's method was first brought to our attention by Associate Professor Jouko Ylä-Liedenpohja.


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Department of Accounting and Finance, University of Vaasa,
Finland

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