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What is minimum rate of return?
It is the lowest return on project or investment that will make the firm or investor to accept that project.
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
Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of 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 ---- ----
Who is default borrower?
the one who takes loan for the very purpose and doesn't return the amount after the required date of return
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
How does a change in the required rate of return affect project's Internal Rate Of Return?
A change in the required rate of return will affect a project's Internal Rate of Return (IRR) by potentially shifting the project's feasibility. If the required rate of return increases, the project's IRR needs to be higher to be considered acceptable. Conversely, a decrease in the required rate of return could make the project's IRR more attractive.
If a project with conventional cash flows has a profitability index equal to 1.0 the project you will pay back during the life of the project II will have an internal rate of return that equals the?
required return
What would happen to the NPV and PI for each project if the required rate of return increase?
If the required rate of return for a project increases, the NPV will decrease because future cash flows are being discounted at a higher rate, making them less valuable in present terms. Similarly, the profitability index (PI) would also decrease as the ratio of present value of future cash flows to initial investment would be lower due to the higher discount rate.
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
What happens if the IRR is greater than the required rate of return?
The IRR rule states that if the internal rate of return (IRR) on a project or investment is greater than the minimum required rate of return - the cost of capital - then the decision would generally be to go ahead with it. Conversely, if the IRR on a project or investment is lower than the cost of capital, then the best course of action may be to reject it.
How did childbirth customs change after the Industrial Revolution?
The return to natural childbirth increased and fewer women required medication during delivery
What is minimum rate of return?
It is the lowest return on project or investment that will make the firm or investor to accept that project.
What is minimum attractive rate of return?
It is the lowest return on project or investment that will make the firm or investor to accept that project.
What required all states to return fugitive slaves to their owners?
The Fugitive Slave Act of 1850, which was a component of the Compromise of 1850, required all states, including free states, to return fugitive slaves to their owners. This law increased tensions between pro-slavery and anti-slavery groups in the United States.
Explain why a characteristic of an efficient market is that investments in that market have zero NPVs?
On average, the only return that is earned is the required return-investors buy assets with returns in excess of the required return (positive NPV), bidding up the price and thus causing the return to fall to the required return (zero NPV); investors sell assets with returns less than the required return (negative NPV), driving the price lower and thus the causing the return to rise to the required return (zero NPV).
When did Return to Zork happen?
Return to Zork happened in 1993.
