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Value of the common stock will go down.

As market becomes riskier market participants adjust expected risk premium and start to demand higher returns, consequently they begin to sell stocks as they do not satisfy their newly adjusted expected risk premium. As a result stock price goes down.

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Q: If the market risk premium were to increase everything else beign equal the value of common stock would do what?

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The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.

Banks are currently using 8% market risk premium. Data as of Feb, 2013.

As of July 2014, the market cap for Dow 30 Premium (DPD) is $194,882,216.61.

As of July 2014, the market cap for Dow 30 Premium (DPO) is $385,818,522.05.

earnings per share

Premium Rush grossed $20,275,446 in the domestic market.

No- the market risk premium is the slope of the Security Market Line (SML).

The price of the bond decreases; the inflation premium would increase the market interest rate, which in bond valuation is located in the denominator, and the coupon payment rate is located in the numerator. When calculating the NPV of future coupon payments, as the denominator or market interest rate + inflation premium increases, the Net Present Value of future coupon payments decreases and the overall value of the bond decreases as well. The price of the bond decreases; the inflation premium would increase the market interest rate, which in bond valuation is located in the denominator, and the coupon payment rate is located in the numerator. When calculating the NPV of future coupon payments, as the denominator or market interest rate + inflation premium increases, the Net Present Value of future coupon payments decreases and the overall value of the bond decreases as well.

As of July 2014, the market cap for Madison Strategic Sector Premium Fund (MSP) is $74,681,988.08.

As of July 2014, the market cap for Nuveen Equity Premium and Growth Fund (JPG) is $237,679,550.88.

As of July 2014, the market cap for Nuveen Equity Premium Advantage Fund (JLA) is $347,956,100.35.

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