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If the market risk premium were to increase everything else beign equal the value of common stock would do what?
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.
What else can I help you with?
What do common market and currency have in common?
everything
If the inflation premium for a bond goes up the price of the bond?
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.
What was the goal of common market?
What was the goal of the common market
What will happen to yield to maturity when market yield increase?
increase
What are is the Solution to excess capacity in a market?
The "solution" is that the manufacturers need to do some combination of the following: Find new markets (or start making new products) Reduce production Reduce manufacturing costs (fixed costs, variable costs, inventory, everything) Increase the perceived value of their products to acheive higher prices or market share) Reduce the price of their products to increase their market share
What do common market and currency have in common?
everything
An increase in the riskiness of a particular security would NOT affect?
An increase in the riskiness of a particular security would not affect the market risk premium, as it is determined by overall market conditions and not specific to individual securities.
The market risk premium is measured by?
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.
What is the current market risk premium?
Banks are currently using 8% market risk premium. Data as of Feb, 2013.
What is the market cap for Dow 30 Premium DPD?
As of July 2014, the market cap for Dow 30 Premium (DPD) is $194,882,216.61.
What is the market cap for Dow 30 Premium DPO?
As of July 2014, the market cap for Dow 30 Premium (DPO) is $385,818,522.05.
An increase in the market price of a company's common stock will immediately affect its?
earnings per share
If the inflation premium for a bond goes up the price of the bond?
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.
What is upward expansion?
Upward expansion refers to a company's growth strategy that involves increasing its market share by targeting higher-end or premium segments of the market. It involves offering more expensive, higher-quality products or services to attract customers who are willing to pay a premium for them. This strategy can help a company increase its revenues and profitability.
How much money did Premium Rush gross domestically?
Premium Rush grossed $20,275,446 in the domestic market.
Is Beta the slope of the security market line?
No- the market risk premium is the slope of the Security Market Line (SML).
What is the market cap for Madison Strategic Sector Premium Fund MSP?
As of July 2014, the market cap for Madison Strategic Sector Premium Fund (MSP) is $74,681,988.08.
