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If a company stock price goes up and nothing else changes the required rate of return should do what?
Wiki User
∙ 10y ago
if a companys stock prices goes up and nothing else changes, the required rate of return should
Wiki User
∙ 10y ago
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Explain why a characteristic of an efficient market is that investments in that market have zero NPVs?
On average, the only return that is earned is the required return-investors buy assets with returns in excess of the required return (positive NPV), bidding up the price and thus causing the return to fall to the required return (zero NPV); investors sell assets with returns less than the required return (negative NPV), driving the price lower and thus the causing the return to rise to the required return (zero NPV).
How can one determine whether a stock is overvalued or it is undervalued?
stock is overvalued when its expected return is more than investor's required return
Relationship between required rate of return and coupon rate on the value of a bond?
required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from investing in a bond
Why is cost associated with internal equity?
nIf managers are investing shareholders' funds, shareholders will expect to earn their required rate of return nFor internal equity, the required rates of return are equivalent to the cost as no issue costs are involved
Difference enters bond's coupon interest rate the current yield y bond-holder's required rate of return?
Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return?
What is the current required rate of return on Coca-Cola Company?
10%
When is a business owner required to submit an annual return to Companies House?
A company, or business owner, is required to submit an annual return to Companies House. They must file their return 28 days before their annual anniversary.
When was Return to Nothing created?
Return to Nothing was created in 2004.
When was You Owe Me Nothing in Return created?
You Owe Me Nothing in Return was created in 2002.
What can I do with a credit card that I did not apply for?
Nothing !... If you didn't apply for it - using it is committing FRAUD ! Return it to the card company - with a note telling them you don't want it.
What does return on assets mean to a small company?
"Return on assets, also known as return on investments, is an indication of how well a company uses their holdings to generate a profit. With any company, the higher the return, the better the company is doing."
Explain why a characteristic of an efficient market is that investments in that market have zero NPVs?
On average, the only return that is earned is the required return-investors buy assets with returns in excess of the required return (positive NPV), bidding up the price and thus causing the return to fall to the required return (zero NPV); investors sell assets with returns less than the required return (negative NPV), driving the price lower and thus the causing the return to rise to the required return (zero NPV).
How does a change in the required rate of return affect project's Internal Rate Of Return?
A change in the required rate of return will affect a project's Internal Rate of Return (IRR) by potentially shifting the project's feasibility. If the required rate of return increases, the project's IRR needs to be higher to be considered acceptable. Conversely, a decrease in the required rate of return could make the project's IRR more attractive.
Can your employer force you to buy a company shirt?
Yes, you can be forced to buy your shirt if it is required work wear. But it is also deductible as an employment expense on your tax return.
Are you obligated to return bookkeeping materials as a subcontractor when you have not been paid for the work done?
You are required to return any materials that belong to your client but not any work that you have done. If the client provided you with a copy of his accounting software file, for instance, return a copy of that same file. You are not required to give him a copy of the file that includes the work that you have done. That copy belongs to you. In short, give him anything that he gave you...nothing more.
How does the cost of debt differ from the required rate of return for bondholders?
Question 4 How does the cost of debt differ from the required rate of return for bondholders?
How does cost of debt differ from the required rate of return for bondholders?
Question 4 How does the cost of debt differ from the required rate of return for bondholders?
