When you think about securities (i.e., stock and bond) valuation, you should be able to view securities from both an investor's perspective as well as a corporation's perspective. Explain how an investor's expected rate of return on a stock and a bond is linked to an organization's required rate of return on that stock and bond. In addition, provide an example of a company whose stock (Note: You could use Yahoo! Finance to search for companies and their historical performance) was affected when it released its earnings (i.e., 10K-Annual Report or 10Q-Quarterly Report) and indicate, from a business perspective, why the value of that company's equity fell or rose as a result of a business outcome.

• One way to find news about a particular company and its earnings is to use Google Search and type the company's name and the word 'earnings' into the search bar.
• Note, that you are still required to provide two references for your response and that they should be references to a scholarly article or a business publication (i.e., Wall Street Journal, Forbes, Financial Times, Barron's, etc.)

Answer rating: 100% (QA)

Answer The required rate of return is the minimum return an investor will accept for owning a companys stock as compensation for a given level of risk associated with holding the stock The RRR is also ... View the full answer