Why is the required rate of return for a stock the discount rate to be used in

Question:

Why is the required rate of return for a stock the discount rate to be used in valuation analysis?

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

Step by Step Answer:

Related Book For book-img-for-question

Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

See More Books

Question Posted: Dec 27, 2023 05:18 AM

See More Questions

In Problem 10.16, we projected financial statements for Wal-Mart Stores, Inc. (Walmart) for Years +1 through +5. The data in Chapter 12s Exhibits 12.16, 12.17, and 12.18 include the actual amounts...
In Problem 10.16, we projected financial statements for Walmart Stores, Inc. (Walmart) for Years +1 through +5. The data in Exhibits 12.17-12.19 (pages 948-950) include the actual amounts for 2012...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
. 4. Bank overdrafts repayable on * 1 point demand may be included in the cash and cash equivalent balance. True O False
(a) Let V = x 2 y 2 z in a region ( = 2 0 ) defined by 1 < x, y, z < 1. Find the charge density v in the region. (b) If the charge travels at 10 4 ya y m/s, determine the current crossing surface 0...
A television company purchased machinery for BD 15,000 in 2009 and a salvage value of BD 3500 after 7 years. It is estimated to produce a maximum production of 14,000 units in a span of 7 years. In...
Understand the effects of competition laws on pricing
Ironjay, Inc., produces two types of weight-training equipment: the jay-flex (a weight machine that allows the user to perform a number of different exercises) and a set of free weights. Ironjay...
should flotation cost be included in the component cost of debt calculation? explain
Jeffrey Vaughn, president of Frame-It Company, was just concluding a budget meeting with his senior staff. It was November of 20x0, and the group was discussing preparation of the firm's master...
Why can earnings not be used as readily as dividends in the present value approach?
What is meant by intrinsic value? How is it determined?
Describe the features and properties that distinguish human organizations from other systems.
Follows is a list of outstanding invoices at 12/31/09. List is by customer. Company: Winter Invoice: 101 Date: Amount: 4/15 300.00 155 7/1 500.00 162 10/14 600.00 197 12/16 250.00 Bradley 126 6/25...
Question 3. The acceleration of a robot as it moves along a straight line in the horizontal x-axis is given by -kt a = e (2 cos wt +3 sin wt), k = 0, w % 0, where k and w are positive constants and...
(1 pt) To find the length of the curve defined by from the point (0,0) to the point (1,9), you'd have to compute where a b= and f(x)= y=5x+4x / f(x)dx
screen. In Exercises 21 through 32, find the instantaneous rates of change of the given functions at the indicated points. 21. f(x) = 2x + 3, c = 2 22.) f(x) = -3x+4, c = 3 23. f(x) = x - 1, c = 1...
Solve . f(x)= cos(x) 2+ sin(x)
Name each of the following compounds. Use a common name for at least one compound. (a) HO2C(CH2)7CH(CH3)2 (b) (c) Cl Cl CO,H CO,H
Is it a breach of fiduciary duty for a director of a real estate investment trust (REIT) negotiating a joint venture on behalf of the REIT with another director for the development of a portfolio of...
What are the principal risk factors in information systems projects, and how can they be managed? a. Identify and describe each of the principal risk factors in information systems projects. b....
What major factors are driving the internationalization of business? a. List and describe the five major dimensions for developing an international information systems architecture. b. Describe the...
What are the alternative strategies for developing global businesses? a. Describe the four main strategies for global business and organizational structure. b. Describe the four different system...
.Is bankruptcy on the part of the borrower a common risk that frequently interferes with a lenders efforts to work out a defaulted loan through either nonforeclosure means or foreclosure? Discuss.
For each of the following, compute the future value: Present Value Years Interest Rate $ 1 , 2 5 0 1 9 1 2 % $ 9 8 , 7 2 7 1 5 1 3 % $ 6 2 5 6 1 2 % $ 1 1 7 , 6 2 2 7 1 6 % 2 . For each of the...
Only need help on 4B and 5. Exercise 9-21 Breakeven Planning; Profit Planning (LO 9-2, 9-3] Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in...

Why is the required rate of return for a stock the discount rate to be used in

Question:

Step by Step Answer:

The required rate of return for a stock is the min...View the full answer

Investments Analysis And Management

Students also viewed these Business questions