If an investors required rate of return increases and all other characteristics of a stock remain the

Question:

If an investor’s required rate of return increases and all other characteristics of a stock remain the same, the value of the stock will _______________.

a. Remain the same

b. Increase

c. Decrease

d. None of the above

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

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

See More Books

Question Posted: Jun 23, 2022 01:55 AM

See More Questions

On January 1, 2020, Philip Company acquired 80% of Shepard Company's ownership for $404,400 cash. At that date, the fair value of the noncontrolling interest was $101,100. The book value of Shepard's...
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 15 years, while Bond S matures in 1 year. a. What will the value of the Bond...
The accompanying data are consistent with summary statistics that appeared in the paper Shape of Glass and Amount of Alcohol Poured: Comparative Study of Effect of Practice and Concentration (...
Let X1, X2, . . . , Xn and Y1, Y2, . . . , Ym be independent random samples drawn from normal distributions with means X and Y, respectively, and with the same known variance 2.Use the generalized...
Prepare the statement of cash flows under the indirect method for the Snail Company using the information from P6- 10 and the following cash flow information: In p6-10 Snal Company Income Statement...
Show that, for irrotational axisymmetric flows in cylindrical coordinates, the streamfunction satisfies the following equation: \[\frac{\partial^{2} \psi}{\partial r^{2}}-\frac{1}{r}...
Visic Corporation, a manufacturing company, produces a single product. The following information has been taken from the companys production, sales, and cost records for the just completed year. The...
Assume we live in a single-factor world, where the market is the only factor and assets are correctly priced. The expected market return is 6%, and the risk-free rate is 3%. Consider a risky...
Scheduled loan payments of $1500 due in 6 months and $1900 due in 21 months are rescheduled as a payment of $2000 due in 3 years and a second payment due in 45 months. Determine the size of the...
Briefly explain what is meant by the terms cumulative and noncumulative as they relate to preferred stocks.
If a stock is selling at $400 with a current dividend of $40 and a potential investors required rate of return is 15%, what would be the anticipated dividend growth rate?
Oxygen is adiabatically and reversibly expanded in a nozzle from 200 psia and 600F to 70 psia. Determine the velocity at which the oxygen leaves the nozzle, assuming that it enters with negligible...
The staples inside a stapler are kept in place by a spring with a relaxed length of 0.115 m. If the spring constant is 51.0 N/m, how much elastic potential energy is stored in the spring when its...
Suppose the current exchange rate for the Polish zloty is zl 2.94. The expected exchange rate in three years is zl 3.01. What is the difference in the annual inflation rates for the United States and...
Assume the government issues a semi - annual bond that matures in 5 years with a face value of $ 1 , 0 0 0 a coupon yield of 1 0 percent. What would be the price if the yield to maturity ( semi -...
What involvement do I normally have with financial statements? 2. Why is it important to understand how financial statements relate to business performance? 3. How would a Managerial Accounting and...
If a switch occurs from currency into deposits, what happens to the federal funds rate (central bank rate)? Use the supply and demand analysis of the market for reserves to explain your answer. Why...
Justa Coporation produces and sells three products, A, B, and C. The three products are sold in a local market and in a regional market. At the end of the first quarter of the current year, the...
(a) How far away can a human eye distinguish two ear headlights 2.0 m apart? Consider only diffraction effects and assume an eye pupil diameter of 5.0 mm and a wavelength of 550 nm. (b) What is the...
Define response rate and discuss why a marketing manager might be concerned about the response rate achieved in a particular survey. Give an example.
Prepare a table that summarizes some of the key advantages and limitations of mail, e-mail, telephone, and personal interview approaches for administering questionnaires.
Would a firm want to subscribe to a shared cost data service if the same data were going to be available to competitors? Discuss your reasoning.
Liberty Ventures Inc. reported $173,800 profit in 2023 and declared preferred dividends of $15,700. The following changes in common shares outstanding occurred during the year: Jan. 1 60,000 common...
Riverbed Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 4 sets at $565 each. On January 10, Riverbed purchased 7 units at $755 each. The...
Task (40 marks) 1. Provide the URL / link with a summary of your chosen "real world" example (you have to write the summary in your own words, do not copy-paste). (1 page 10 marks) 2. Explain how are...

If an investors required rate of return increases and all other characteristics of a stock remain the

Question:

Step by Step Answer:

c Decrease The required rate of return is the minimum return an investor wil...View the full answer

Principles Of Finance

Students also viewed these Business questions