0
Why might investors demand a lower rate of return for an investment in Microsoft as compared to United asirlines?
Wiki User
∙ 11y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
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.
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
What is the definition of ishares?
iShares are a brand of exchange-traded funds (ETFs) managed by BlackRock, a global investment management corporation. iShares ETFs offer investors a way to invest in a diverse range of asset classes and markets with the benefits of portfolio diversification and lower fees compared to traditional mutual funds.
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 are Microsoft disadvantage?
This question is too broad to answer. Microsoft Corporation is a huge company. Please ask again to indicate a comparison, like compared to what.
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
What are the disadvantages of creating interactive media using Microsoft Power Point compared to Microsoft word in terms of their user friendliness in developing interactive media?
What are the disadvantages of creating interactive media using Microsoft Power Point compared to Microsoft word in terms of their user friendliness in developing interactive media
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.
Why is Microsoft Excel compared to a ledger?
Because a ledger is organized into a series of rows and columns.
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.
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 Microsoft windows do?
It's a software program where you can do alot of things Mac is nothing compared to Windows.
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.
