What are the three factors that influence the required rate of return by investors?
Answer to relevant QuestionsIf inflationary expectations increase, what is likely to happen to yield to maturity on bonds in the marketplace? What is also likely to happen to the price of bonds?The preferred stock of Denver Savings and Loan pays an annual dividend of $5.70. It has a required rate of return of 6 percent. Compute the price of the preferred stock.Why is the cost of retained earnings the equivalent of the firm’s own required rate of return on common stock (Ke)?In addition to U.S. corporations, what government groups compete for funds in the U.S. capital markets?What act of Congress created the Securities and Exchange Commission?
Post your question