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 small trucking company is determining the com-position of its next trucking job. The load master has his choice of seven different types of cargo, which may be loaded in full or in part. The...
-
What is the relationship between asset turnover, return on assets, and return on sales?
-
Variance analysis, materials and labor Pharout Company uses a standard cost system. Job 822 is for the manufacturing of 500 units of the product P521. The company's standards for one unit of product...
-
What is the present value of the following annuity? $2,073 every half year at the beginning of the period for the next 4 years, discounted back to the present at 5.29 percent per year, compounded...
-
Evie Excellent is trying to create financial statements for her start-up company, Stinky Soaps. Evie began the business on Jan 1, 2023 with a $1,000 investment from her parents. The first six months...
-
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?
-
Recently, Adam put larger wheels on his skateboard and noticed it would coast farther. He decided to test this relationship. He collected some skateboards, attached wheels of various sizes to them,...
-
Writeajavaprogramtoprintbelow pattern? 4444 3333 2222 1 1 1 1
-
If you work in a healthcare organization, evaluate the organization's responsiveness to diversity. What are the organization's areas of strength? Which areas need the most improvement? How should a...
-
Identify all evidence law issues. Point out the applicable law with respect to each identified issue. Analyze the issue based on the facts of the question by applying relevant laws. Sufficiently...
-
What strategies can organizations implement to recognize and reward employees who consistently demonstrate advanced levels of Organizational Citizenship Behavior (OCB) ?
-
1) In the functional finance finance view, bond sales: Finance deficit spending Add to bank reserves depleted by deficit spending Drain excess reserves to maintain short term interest rates None of...
-
During operation a \(100-\mathrm{kg}\) press is subject to the periodic excitations shown. The press is mounted on an elastic foundation of stiffness \(1.6 \times 10^{5} \mathrm{~N} / \mathrm{m}\)...
-
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...
-
Your firm utilizes TZS 130,000 a week to pay bills. The standard deviation of these cash flows is TZS 15,000. The fixed cost of transferring funds is TZS 51 a transfer. Your firm has established a...
-
What is the regression equation? For y=a+bx, explain what y, a, b, and x are and stand for --- explain each of these in their real-life context, using the numbers from your regression equation and...
-
Voici, dans le dsordre, la liste des comptes de la socit Compte Ltd pour l'exercice termin le 31 dcembre X6 : Actions ordinaires (175 000 $) ; Rsultats non distribus (325 000 $) ; Comptes...
Study smarter with the SolutionInn App