# Expected profit

- Canonical URL: https://www.gerhardmerk.de/expected-profit
- Post ID: 592691
- Modified: 2023-07-25T20:59:35+00:00
- Language: en

## Definition

In general, the hope of achieving an excess of income over expenses from an investment. - The expected total return on a financial instrument at maturity. - In the case of equities, usually the share price calculated as the sum of expected future dividend payments discounted at a risk-free interest rate and the risk premium charged to investors for holding the shares. - See discounting, disclosures, incorrect, present value, earnings potential, zero dividend, sentiment. - Cf. ECB Monthly Bulletin of March 2004, pp. 37 ff., ECB Monthly Bulletin of September 2007, pp. 47 ff. (empirically detectable synchronization between corporate profits and economic growth; overviews), ECB Monthly Bulletin of April 2008, pp. 70 ff. (profits as a determinant of investment). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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