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Why might investors demand a lower rate of return for an investment in ExxonMobil as compared to United Airlines?
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Why might investors demand a lower rate of return for an investment in Exxon Mobil as compared to United Airlines?
ExxonMobil has low financial risk, relatively high return, and a strong market position. They are more likely to raise debt capital at a significantly lower cost than United Airlines which is a financially troubled form. Investors are willing to accept low return for low risk.
What is stock variation?
It determines how much of a risk you are taking, compared to the amount of return you can expect back from your investment.
What does a company's stock price say about that company?
A company's stock price can show the following:The confidence and trust investors have on this companyThe profit making history of the companyThe probabilities of reaping capital appreciation on this stocketcRoughly: The higher a stocks price in the market when compared to its face value, the greater investors confidence in it.
What is a capital investment's net present value?
Widely used approach for evaluating an investment project. Under the net present value method, the present value (PV) of all cash inflows from the project is compared against the initial investment (I). The net-present-valuewhich is the difference between the present value and the initial investment (i.e., NPV = PV - I ), determines whether the project is an acceptable investment. To compute the present value of cash inflows, a rate called the cost-of-capitalis used for discounting. Under the method, if the net present value is positive (NPV > 0 or PV > I ), the project should be accepted.
Where do the terms bull market and bear market come from?
A Bull market signifies a stock market situation where investors are beaming with confidence and the price of stocks and the market index is going up consistently. Such a solid rise in market indices is compared to the uncontrolled running of a raging bull and hence the term BULL market. A Bear market signifies a stock market situation where investors are very cautious and are not willing to buy new shares and are considering liquidating their holdings. The market is either flat or going down consistently. Such a situation is compared to the grip or hug of a bear which is considered very difficult to break and hence the term BEAR market.
Why might investors demand a lower rate of return for an investment in Exxon Mobil as compared to United Airlines?
ExxonMobil has low financial risk, relatively high return, and a strong market position. They are more likely to raise debt capital at a significantly lower cost than United Airlines which is a financially troubled form. Investors are willing to accept low return for low risk.
When is real estate valued?
Because real estate is valued as a relatively stable investment, compared to the stock market, the industry has become more attractive to investors during periods of uncertainty
Is Philippine airlines cheaper compared to other airlines?
no. Cebu Pacific is cheaper and try to take advantage of their offers on price cut.
Do Horizon Airlines offer affordable flights?
"Horizon Airlines do offer affordable flights. In peak season they can offer as low as $100 per flight, which is an amazing bargain compared to other Airlines."
Where can one look for cheap flights to Grenada?
Virgin Atlantic is one of the cheapest airlines that provide flights from and to Grenada. They are the cheapest compared to other airlines such as British Airways.
What does low risk investment mean?
Investment which contain lower level of exposure to risk as compared to other investments like Bank deposits or Treasury notes etc. With that it usually also has low level of interest as compared to other products available
Are timeshare condos really a wise investment?
Timeshare condos are not really a wise investment as the amount of utility derived from Timeshare condos is disproportionally small compared to the risk.
What is the role of the sub prime mortgage in the current US economic situation?
Sub-prime mortgages have been grouped together into asset packages which have relatively low value compared to the return without default, investors who like high risk may choose to purchase them but it is likely that these investment options will yield a low or negative return.
How is Southwest Airlines company different from other companies?
Southwest airlines company is different from other airline companies because it offers lower prices for most flights compared to most other companies.
What is stock variation?
It determines how much of a risk you are taking, compared to the amount of return you can expect back from your investment.
What are the duties of angel investors?
Angel investors work in the same way as venture capitalists. Compared to venture capital, angels are much more attached into your business. The major variation is that an angel is usually a wealthy individual and is looking for lucrative investments.
Why would you choose a stock as compared to a different form of investment?
big balls in ur mouth on Sunday night =]]
