Geometric Arithmetic Standard Mean Mean Deviation Distribution (%) Series (%) (%) (%) Large Company 99 11.9 20.4 Stocks Small Company Stocks 12.1 16.7 32.6 Long-Term Corporate Bonds 5.9 6.2 8.3 Long-Term 5.5 5.9 9.5 Government Bonds Intermediate-Term 5.4 5.5 5.7 Government Bonds U.S. Treasury Bills 3.6 3.7 3.1 Intlation 3.0 3.1 4.2

Q: Do the Market-value ratios relate a firm's stock price to its earnings and book value per share?…

A: The market value ratios are generally used to assess the current stock price of a public listed…

Q: Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The…

A: A. A stock split: No change in total equity   B. Recording Revenue: Increase in total equity   C.…

Q: What is the expected return of the corporate bond​ investment?

A: Expected return of the corporate bond investment is calculated using following equation Expected…

Q: Which of the following is a true statement regarding publicly traded stocks and bonds? O A share of…

A: The constant dividends model is a stock valuation model that assumes that the dividends of a company…

Q: How do you calculate price earnings ratio, given the stocks historical prices?

A: Price earnings ratio is ratio of price per share and earning per share. PE ratio=Price per…

Q: Which of the following is the risk due to a changes in the stock market?      Business risk…

A: The investments that we make in debt, equity and other financial securities are exposed to different…

Q: If given the original value (par value) and market price (the price the bond sold for), how do you…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If shares have been sold above the nominal value what does this mean and why?

A: Nominal value is the par value or face value of share which is assigned to the share and at which…

Q: he cost of debt is the _____ of the company's bonds. yield to maturity price current yield coupon…

A: Bond has YTM, coupon rate, its price and current yield

Q: Briefly explain how the yield to maturity (YTM) of a corporate bond is calculated. Is this the…

A: YTM is the compounded annual rate of return earned on debt security purchased on given date and held…

Q: What does the P/E ratio measure? A . Th e “multiple” that the stock market places on a company’s…

A: P/E ratio :

Q: Out of the following options below, which one has the lowest level of risk, and which one has the…

A: Risk assessment is used by investors and financial professionals to create portfolios that are in…

Q: When liabilites increase and stock holder equity decreases, what is the total assets?  shouldn't it…

A: According to the accounting equation, the total of liabilities and the stockholder equity is the…

Q: The stock market valuation/capitalization of a company in the NY Stock Exchange is based on the…

A: Market capitalization or stock market value = no. of shares * market price per share

Q: The most popular method that firms use to calculate the cost of equity is ________.  Group of answer…

A: The question is based on calculation of cost of equity. Cost of Equity for a firm is the expected…

Q: How do you calculate dividend yield for stock?

A: dividend yield is the ration of dividend paid by the firm divided by price of share of the firm.

Q: n the general stock and bond markets lead to changes in the required rate of return on a firm’s…

A: Step 1 The required reimbursement rate is the minimum refund that an investor will receive from…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: Why are long-term corporate bonds higher risk than short-term corporate bonds? Provide an example

A: Longer term bonds have higher risks than short term bonds due to their duration and time period.…

Q: How do I calculate the net abount of stock issued when the firm pays X amount of dollars in…

A: Company give dividends out of net income to shareholders to reward shareholders So that they…

Q: When computing diluted earnings per share, which of the following will not be considered in the…

A: Diluted earnings per share are calculated considering the potential common shares or convertible…

Q: When using discounted dividend method to estimate stock price, which of the following should be used…

A: When using discounted dividend method to estimate stock price, used required return of equity as…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.