Why might investors demand a lower rate of return for an investment in Microsoft as compared to

Question:

Why might investors demand a lower rate of return for an investment in Microsoft as compared to United Airlines?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

See More Books

Question Posted: Apr 06, 2015 06:33 AM

See More Questions

Why should the required rate of return for a capital budgeting problem be project specific? Doesnt the firm just have to satisfy an overall cost-of-capital requirement?
Why does the required rate of return for a particular bond change over time?
a. Calculate the required rate of return for an asset that has a beta of 1.8, given a risk-free rate of 5% and a market return of 10%. b. If investors have become more risk-averse due to recent...
How are Bit coins different from VCU1, VCU2, and VCU3 currencies? How are they similar? What is the primary economic threat of Bit coins?
Suppose that a company is currently private (its shares do not trade on a public stock exchange) but it is considering going public (issuing shares on a public stock exchange). Discuss the incentives...
Surprisingly, injuries such as strains and sprains are higher among airport screeners than any other federal work group. A recent study found the injury rate for airport screeners was 29%, far...
A dielectric slab completely fills the space between the plates of a parallel-plate capacitor. The magnitude of the bound charge on each side of the slab is $75 \%$ of the magnitude of the free...
The undersigned promises to pay to the order of John Doe Nine Hundred Dollars with interest from date of note. Payment to be made in five monthly installments of One Hundred Eighty Dollars, plus...
84. Which is incorrect order of -I (1) F>Cl> Br>I (2) NR,>-NH3>-NO (3) OCH3>-OH>NH, > -C = CH>H (4) 85. Which of the following compounds is most basic? (1) CH3NH2 (3) CH,-N-CH3 CH (2) CH3-NH-CH3 (4)...
Question 4 (25 points): Prof. Yunes's daughter, Lavinia, has come up with the brilliant idea of having a GBSA beach luau by the Cape Florida lighthouse, and sweet talked the vice dean into providing...
How is valuation of any financial asset related to future cash flows?
What are the three factors that influence the required rate of return by investors?
Appraise the shifting position of the NLRB regarding representation election campaigning?
On your first solo cross-country flight in a Cessna 152, you had a flight time of 1 hour and 25 minutes at a ground speed of 125 knots. What is the DISTANCE that you traveled in Nautical Miles (NM)?
Dome Metals has credit sales of $486,000 yearly with credit terms of net 90 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take...
Two small balls, each of mass 5.0 g, are attached to silk threads 0.5 m long, which are in turn tied to the same point on the ceiling. When the balls are given the same charge Q, the threads hang at...
What are the ethical implications of authority dynamics, including the use of coercive power, surveillance technologies, and propaganda techniques, in the maintenance of social order and political...
A block is pressed against a vertical wall by a force F, as the drawing shows. P This force can either push the block upward at a constant velocity or allow it to slide downward at a constant...
Explain the steps to be taken by a purchasing company when new set of books are opened to record the transactions.
For each of the following reactions, express the equilibrium constant: a) H20 (I) H2 (g) + 02 (g) Ke = 1.0x107 b) Fe2 (g) 2F (g) Ke= 4.9 x 10-21 c) C (s) + O2 (g) d) H2 (g) + C2H4 (g) C2H6 (g) Ke =...
One could say that financial leverage has its most important impact on EPS rather than net income after taxes. How would you support this statement?
Does being at the EPS indifference point mean that you are always indifferent between two financing plans? Explain.
Discuss the concept of operating leverage as it would apply to a major, independent television broadcaster.
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a...
1. Review the following tracings, identify the type of BBB, and then explain how you determined your answers 2. Review the following tracing. Do you suspect left ventricular hypertrophy? Explain how...
What are signs that its time to cut corners to get the product launched, and what would you cut?

Why might investors demand a lower rate of return for an investment in Microsoft as compared to

Question:

Step by Step Answer:

Because Microsoft ...View the full answer

Foundations of Financial Management

Students also viewed these Corporate Finance questions