The present value of investing in a stock should not depend on how long the investor plans
Question:
The present value of investing in a stock should not depend on how long the investor plans to hold it. Explain why.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
The value of a share is the discounted value of all expected futu...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
Students also viewed these Corporate Finance questions
-
a. List at least two benefits of using enterprise systems. Identify the three types of integration illustrated below. Benefits Three type of Integration Suppliens. Bumine Partners Processes...
-
Explain how to calculate the present value of a growing annuity.
-
Explain how to calculate the present value of a stream of cash flows.
-
Create a use case diagram that would illustrate the use cases for the following dentist office system: Whenever new patients are seen for the first time, they complete a patient information form that...
-
What is the change in the atomic mass number for each of the reactions in the preceding two questions?
-
A wave on a rope that measures 10 m long takes 2.0 s to travel the whole rope. If the wavelength of the wave is 2.5 m, what is the frequency of oscillation of any piece of the rope?
-
On the Internet, find the SEC Staff Accounting Bulletin No. 101. What are the criteria for determining if revenue is realized or realizable and earned?
-
Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel The purpose of this integrated exercise is to demonstrate the interrelationship between cost estimation techniques and subsequent...
-
No Cash Advance Furniture Equipment Car Accounts Notes Quedan, Rental & Payable Payable Capital Fixture 2 3 ASSETS LIABILITIES + OWNER'S EQUITY PHP PHP PHP Bess Quedan began operating the Ace Mode...
-
Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and the available pounds of each bean are as follows: Consumer tests with coffee products were...
-
Calculate the real cash flows on the 7 percent U.S. Treasury bond (see Section 3.5) assuming annual interest payments and an inflation rate of 2 percent. Now show that by discounting these real cash...
-
Define the market capitalization rate for a stock. Does it equal the opportunity cost of capital of investing in the stock?
-
The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $145,000 at...
-
Differentiate between average entrepreneurs and serial entrepreneurs.
-
Is the value creation curve the same for different types of entrepreneurs? Why or why not?
-
Discuss the importance of the measurement-enhancement loop in the value creation model.
-
Describe the major components of the C-MER value creation model.
-
Why is an understanding of business processes important? Describe the advantages of business processes in general.
-
Herbalife continues to be a successful direct selling company despite various accusations of improper activity over the yearsmost recently Bill Ackmans campaign to prove it is a pyramid scheme. In...
-
Refer to the data in QS 10-1. Based on financial considerations alone, should Helix accept this order at the special price? Explain.
-
Write cell reactions for the electrochemical cells diagrammed here, and use data from Table 19.1 to calculate E cell for each reaction. Table 19.1 2+ (a) Al(s) Al+ (aq)||Sn+ (aq)|Sn(s) (b) Pt(s) Fe2+...
-
Some of the items in Problem 17 involve a cash discount. For each of these, calculate the rate of interest paid by customers who pay on the due date instead of taking the cash discount. a. 2/30, net...
-
Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lockbox system. She forecasts that 300 payments a day will be made to lockboxes, with an average payment size...
-
In Section 30-4 we described a three-month bill that was issued on an annually compounded yield of 5.18%. Suppose that one month has passed and the investment still offers the same annually...
-
1.1. The difference between human engineered systems and natural systems (like an ecosystem) is that human made systems tend to perform more consistently than natural systems. that natural systems...
-
Initial trusting in a new group situation is recommended because: a. Trust is easy to build O b. One would only join a group whose members are all trustworthy c. It can create a self-fulfilling...
-
"M" in SMART Framework refers to which of these? 00000 Measurable Maturity Method Matrix Mission
Study smarter with the SolutionInn App