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The value of the required rate of return would be the same percentage. The investment will not be purchased by a buyer if the percentage is not fixed, solidifying the rate of return when the investment is sold. The value may be more, however, but not less.
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Relationship btwn an investor's required rate of return and value of security?
Relationship btwn an investor's required rate of return and value pf security
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
Show the relationship between required rate of return and coupon rate on the value of a bond?
bal amar pel
When using the net present value method for evaluating an investment an increase in the required rate of return will?
The increase in rate of return will make the investment more difficult to be accepted.
Increase in expected growth rate does what to required return rate?
An increase in a firm's expected growth rate would normally cause its required rate of return to
Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of return
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?
If an investment project has a positive net present value then the internal rate of return is?
Positive present value indicates a successful investment. In terms of rate of return, a positive present value basically indicates that returns will be higher than the specified rate of return. Zero present values mean returns will meet your specified rate exactly. Negative present values mean returns will be less than required.
How do you calculate minimum Required Rate of Return?
The minimum required rate of return, also known as the hurdle rate or cost of capital, can be calculated using the weighted average cost of capital (WACC) formula. The WACC is the weighted average of the cost of equity and the cost of debt, taking into account the proportion of each in a company's capital structure. The formula for WACC is: WACC = (E/V) * Re + (D/V) * Rd * (1 - T), where E is the market value of equity, V is the total market value of equity and debt, Re is the cost of equity, D is the market value of debt, Rd is the cost of debt, and T is the tax rate.
Calculate the value of a 100 debenture in perpetuity the debenture pays a coupon rate of 11 percent and the required rate of return is 9 percent per year?
122.22
What is the relationship between wacc and discount rate of return?
relationship between WACC and required rate of return.
