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Answered 2010-09-13 13:52:57
1. Capital Gains or Losses
2. Current income.
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What is the current market value of a share of RHM stock if the required return on RHM common stock is 10 percent?
$140
What financial assets is likely to have the highest required rate of return based on risk?
common stock
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
Stock has a beta of 1.50 its required return is 14.oo percent and risk free rate of 5.00 What is the required rate of return on the stock market?
rs=Rrf+(rm-Rrf)b 14.0=5-0+(rm-5.0)1.50 14.o-5.0=1.50rm-7.5 9+7.5-1.50rm 16.5/1.50=required return on stock market 11=required return on market ---- ----
If a company stock price goes up and nothing else changes the required rate of return should do what?
if a companys stock prices goes up and nothing else changes, the required rate of return should
What has the higher return preferred stock or common stock?
Dividend on common stock has to be more than dividend on preferred stock because of higher risk involved in equity investments.
Stock A has a beta equals 0.8 while stock B has a beta equals 1.6 Which one what statements is correct?
stock b's required return is double that of stock a's
Why common stock called Variable income securities?
The common stock is called variable income securities because the rate of return of common stock is determined by market and hence the returns continuously changes with the market dynamics.
If the expected rate of return on a stock exceeds the required rate then?
then it is a good buy =-) To put it simply.
Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
For the purpose of calculating the cost of capital the capital components are what?
The principal components taken into account to calculate the cost of capital are the following: The dollar cost of debt, the dollar cost of preferred stock, and the dollar cost of common stock.
How can you calculate internal rate of return on investment in real estat?
common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock
How do you compute a Return on common stockholders equity?
(Net Income - Preferred Stock Dividends) / Average common stockholders' equity
Personal Finance Stocks Dividend Handout?
You Have 1,000 shares of $30 par value preferred stock and 700 shares of common stock. The preferred stock pays an 8.2% guaranteed rate of return. The common stock dividend is 85 cents per share. What is the total dividend of the preferred plus common Stock?
What is components of a soup?
components of a soup are stock ,and fument.
Assume that the risk free rate is 6 percent and the expected return on the market is 13 percent what is the required rate of return on a stock with a beta of 0.7?
14
A stock is expected to pay a dividend of 1 at the end of the year The required rate of return is rs 11 percent and the expected constant growth rate is 5 percent?
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?
Simon has inherited 50000 and has decided to invest the entire amount in stock desiring the highest potential return from the investment?
C. $50,000 in common stock
What is the purpose of the NASDAQ Composite?
The NASDAQ Composite is a stock market index of the common stocks and similar securities listed on the NASDAQ stock market, meaning that it has over 3000 components.
Is it better to be a stock holder or a bond holder?
The way the capitol structure is set up, Bond Holders have a better chance of getting paid then do COMMON Stock and or Preferred stock holders, But there are different level of bonds within that layer of the capitol structure. higher rate of return or possible rate of return, then the risk is there somewhere, I mean ask any of the common stock holders of C or GE
10000 to invest in a stock portfolio. stock A expected return 18 and stock B expected return 11. create a portfolio with expected return of 16.25. how much to invest in stock A and stock B?
6000.00
What do you need to know about the stock market?
#1) The stock market is very risky.#2) Constant vigilance is required.#3) There is usually a transaction fee for every transaction.#4) Common stock is not as valuable as preferred stock.
The XYZ Company is planning a 50 million expansion The expansion is to be financed by selling 20 million in new debt and 30 million in new common stock The before-tax required rate of return on d?
11.5%
Risk-free rate is 6 and the expected return on the market is 13 What is the required rate of return on a stock with a beta of 7?
E (return) = Rf + Beta[Rm - Rf] = 6 + (7) (13-6) = 55 %
Why do bond investors have lower required rates of return than do stock investors?
They take less risk, theoretically, so they have lower expectations.
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