Is stock price maximization good or bad forsociety?

Q: What is the break-even stock price for the protective put?

A: A protective put is when an investor has bought (long) the underlying asset and at the same time…

Q: How might an issue (negative or positive) within the overall stock market impact the company’s stock…

A: The performance of an individual company depends on the news and performance of its own business,…

Q: how does diversification prevent individual stock prices from going down

A: Diversification is a method that mixes a wide variety of investments within a portfolio. By doing…

Q: discuss what is the stock price?

A: >Stocks, when referred to in relation with the paid in capital of a corporation, refers to the…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: Explain 'Can efficient market hypothesis and behavioural finance co-exist to explain stock return…

A: Behavioral finance, a branch of behavioral economics, presupposes that psychological impacts and…

Q: There will likely be a difference between your calculation of the Company’s intrinsic value and its…

A: Intrinsic value is the true or inherent value of a company. It is a fundamental value which is…

Q: What are the advantages and disadvantages of preferred stock from the perspectiveof its issuer?

A: Answer: From the perspective of the issuing entity, the main benefit of preferred stock issuance…

Q: How does a stock price play a role in ROA or ROE

A: Return on Equity (ROE) is the ratio which defines the company’s efficiency to utilize investors…

Q: what would be the stock price?

A: Current stock price refers to the present value of the share based on the future expected payoffs.…

Q: How does forward pe effect the stock market?

A: P/E refers to the price earnings ratio. It is one of the important valuation metrics that we use in…

Q: On what do stock valuations rest?

A: The answer:

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: is passive stock investing the superior approach?

A: Active investing is when the money is invested in investment stocks that have been selected by a…

Q: Taking the Efficient Market Hypothesis into consideration, do you think we still need to study…

A: The efficient market hypothesis (EMH) explains the performance of the stock market as a reflection…

Q: What is the relationship between the price, coupon rate  and market yield?

A: The coupon rate is the bond's interest rate. The coupon rate is not the same as the market interest…

Q: Explain how holding a portion of the earnings (Plowback ratio) could increases the stock price.

A: Answer: The term plow back is used in fundamental analysis which measure to what extent earnings are…

Q: Return formula for common stock?

A: Applying capital asset pricing model (CAPM),

Q: To what extent does investor mood contribute to the observed fluctuati

A: Introduction : In simple words, the given question relates to the concept of emotion investing,…

Q: What is a firm’s intrinsic value? Its current stock price? Is the stock’s “true” long-run valuemore…

A: An estimation of the true value of the stock of the company by considering the risk and return…

Q: what can you say about the price movements of the stock? (TEL)

A: TEL is the ticker of TE Connectivity Ltd. This stock is listed in the NYSE.

Q: what are factors that can influence the price of a stock?

A: Stocks are the company’s securities issued by the companies to raise the funds. Prices of stock…

Q: What role does sentiment play to explain stock price volatility? Explain

A: The role of emotion in determining the price of a company is one of the most significant aspects to…

Q: What will be the significance of the stock buyback to an investor?

A: Introduction: Stock repurchases ensures that by buying outstanding shares of its own stock, a…

Q: Describe how stock prices are determined? How do investors and analysts estimate future stock price…

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

Q: Explain which has a stronger effect on stock prices, the change in the interest rate or the…

A: Stock is one of the major securities issued by the companies and an important financial indicator…

Q: Do you think we still need to study common stock valuation, given the Efficient Market Hypothesis?…

A: Efficient Market Hypothesis represents the stock prices after considering all the information…

Q: Explain the difference between expected rate of return, required rate of return, and historical rate…

A: Return Return is also referred to as the money lost or made over a specific period of time. It can…

Q: What is the expected return on the firms stock

A: Here, Proportion of Debt is 75% Proportion of Equity will be (1-75%) = 25% Cost of Debt is 5% Risk…

Q: To what extent does investor mood explain price fluctuations? Explain

A: Investor:- A person or other entity (such as a company or mutual fund) who invests money in the…

Q: What does it mean to say “stock prices are nonstationary”?

A: Stock prices will be discovered by continuous interaction of demand and supply. Stock prices are…

Q: What is the difference between a stock’s price and its intrinsic value? Why do investors and…

A:

Q: Why does "maximizing firm value" equal to "maximizing stockholders' equity"?

A: Maximization of shareholders wealth means increasing the overall value of the firm, not just its…

Q: “When the stock market rises, investment spending isincreasing.” Is this statement true, false, or…

A: When the stock market rises, investment spending isincreasing. false

Q: How does market cap effect the stock market?

A: Market capitalization is given by the formula: Market capitalization = Price per share x No. of…

Q: How does pe effect the stock market

A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…

Q: Is the Stock Market Efficient?

A: Market efficiency can be defines as the extend up to which all the useful and important information…

Q: How will the change in required return influence the price of a stock? How will the dividend growth…

A: The Gordon growth model calculates the price of the stock by using the dividends, growth rate of…

Q: In Shiller’s terminology, what are ex post stock prices?

A: The intrinsic value of the stock could be higher or lower. The stock investor's purpose is to find…

Q: Is treasury stock an asset? explain.

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: What are the two sources, or components of return for stock?

A: A share in the ownership of a company is known as stock. When stock is purchased a small piece in…

Q: Is it possible that the market for individual stocks could be highly efficient, but themarket for…

A: It is possible that the market for individual stock could be highly efficient, but the market for…

Q: What are the conditions for stock market efficiency? Is it possible that market for individual…

A: Stock prices completely reflect available information in an effective capital market: Rationality,…

Q: Why Are Stock PricesSo Volatile?

A: The prices of stocks listed on stock exchanges are dynamic and change every minute. Volatility is…