A stock's internal rate of return (IRR) is the discount rate that cause the present value of future dividends and the price at which a stock is expected to be sold to equal the current price of the stock. O True O False

Q: The wider the dispersion of returns on a stock, the:

A: Investors evaluate the portfolio or security on the basis of risk profile. The risk profile can be…

Q: A stock's capital gains are equal to its dividend divided by the stock price. OA. True OB. False

A: The required rate of return on a stock measures the rate of return desired by the investors in the…

Q: he price to earnings ratio (P/E) is determined by:   Question 6 options:   1)  expected dividend…

A: P/E ratio stands for Price-Earning ratio. It is that accounting ratio which tells that how much an…

Q: A class of Efficient Market Hypothesis that implies all public information is calculated into a…

A: Efficient Market Hypothesis is the market theory which depicts that market is generally efficient…

Q: There is a --- impact of earnings on stock prices O a. Deductive O b. Positive O c. Normative O d.…

A: Earnings, also known as net income or profit, represent the amount of money a company has left over…

Q: How does higher expected growth affect a stock’s value?

A: Stock value is referred to as the shares of the corporation, which used to appear to trade at the…

Q: The expected return on a stock is called the __ from the investor's perspective, and the __ from the…

A: The expected return for the stock is an important concept. To calculate the expected return for the…

Q: When treasury stock is purchased for more par value of the stock and the cost method is used to…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Should an increase in the volatility of a firm's stock returns be associated with an increase in the…

A: A Call Option is the option(right but not obligation) to purchase an underlying security at…

Q: When calculating a fair value for a stock you are considering buying you should consider all the…

A: The correct answer to the question is "How long you expect to keep it".The duration of the…

Q: A stock with a dividend of $0 must have a value that is less than a stock with a dividend of $2.…

A: The dividends refer to the bonus return that the company provides to its shareholders. It is used as…

Q: A stock's required rate of return The part of a stock's risk that can be eliminated is know as…

A: The risk that can be eliminated is called Unsystematic risk.This risk can be eliminated by the…

Q: What is a capital gain? O The total amount of return expected from a stock investment. O The present…

A: A capital gain is the profit that an investor realizes when they sell an asset, such as a stock, for…

Q: short seller anticipates the stock price will __________, so that the share can be purchased later…

A: In case of short selling, shares are short sold with the anticipation of share price falling and…

Q: Select all that are true with respect to a Price/Earnings (P/E) ratio. Group of answer choices Low…

A: Price/Earnings (P/E) ratio-This ratio helps to  compare the price of a company's stock to the…

Q: Earnings per share is a factor used by the stock market to determine stock prices. Select one: True…

A: There are many methods to determine the stock price of a share. Earnings per shares gives the dollar…

Q: Which one of the following is an example of mental accounting? Multiple Choice associating a…

A: The term "mental accounting" describes the various valuations that individuals assign to the same…

Q: A stock's next expected dividend divided by the current stock price is the: O current yield O total…

A: A stock's price is decided by the dividend it pays, the dividend growth rate and the required rate…

Q: Which of the following statements regarding the dividend discount model f computing stock prices…

A: According to the Gordon’s Model, the market value of the share is equal to the present value of…

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

Q: alue of a stock is less than the current market price, I should ________________ the stock since it…

A: In the stock market prices of stocks are changing and are not fixed and sometimes go up and…

Q: Which of the following statements is most correct? Other things equal, the higher the dividend…

A: Each of these statements reflects different financial concepts that can influence stock values, but…

Interest Rate

When you deposit your money with the bank, the deposit earns you some extra money at the end of the specific period – something more than what you deposited. That amount of money that the bank pays you for keeping the money with the bank is the “interest” and the percentage at which the bank pays you for your amount is called the “interest rate”.