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

Q: 0. What is the value of the stock if your require

A: Given Required rate of return r = 10% Dividend = $4.50 Formula:-  Required rate of return = dividend…

Q: Discuss the main factors that influence the prices of securities on a stock exchane.

A: There are many factors that influence the prices of securities.

Q: How does preferred stock differ from bothcommon equity and debt? Is preferred stock morerisky than…

A: Difference between equity stock and preference stock: Both equity shares and preference shares…

Q: .What is the value of the stock?

A: The constant growth model is a method used for finding the stock price. It is also called the…

Q: What is the cost of the preferred stock, including flotation?

A: Cost of Preferred stock Rp = Annual Dividend/Current market price - floatation cost

Q: What does the rate of return on common stock show, and how is it calculated?

A: Rate of return on the common stock: It signifies the amount of net income that has been retained for…

Q: How does eps affect the stock market

A: The earning per share of the company will be reflective of the total earnings made for each of the…

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: ommon stock? What are the typical features of preferred stock?

A: Both common stock and preferred stock are two different ways of raising capital in the market.

Q: what is the best type of chart to represent the variable Tesco Stock Price?

A: The stock price movements can represent with the help of different chart patterns. The different…

Q: How can I count market value of preffered stock? what do I need and how can I find out those parts…

A: The stock that provides a fixed amount of return (dividend) to its stockholder before paying…

Q: Can you help me with an explaination of how to reverse engineer a stock price please?

A: Reverse engineering allows analysts to remove the uncertainties. It is a discounted cash flow that…

Q: What factors are important when calculating the intrinsic value of a stock?

A: Intrinsic value is the current value of the stock. It is calculated by using the following formula:…

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: Treasury stock is generally accounted for by the?

A: The question is based on the concept of cost accounting. Companies occasionally buy their own shares…

Q: What is the ‘intrinsic value’ of a stock and what does it tell us?

A: Intrinsic value refers to a company's, stock's, currency's, or product's expected or calculated…

Q: Indicate factors influencing the market price of a stock. Explain how changes in the factors will…

A: There can be many factors affecting the stock price, for example, the growth rate, the required…

Q: When is a stock said to be in equilibrium? Why might a stock at any point in time not be in…

A: When buying or selling a stock, investors are indifferent. There is no inherent imbalance if a stock…

Q: Explain why common stock is itself like a call option. What plays the role of the exercise price and…

A: There are two types of options in the market: call options and put options.  Call options allow the…

Q: Where Is Stock Traded?

A: Stock trading: Stock trading is defined as the purchasing and selling of shares in a specific…

Q: explain penny stock Strategy?

A: A penny stock is often a tiny corporation's stock that exchanges for less than $5 per share.…

Q: How to use call options and put options to create a synthetic short position in stock?

A: An options are actually touted as one of common method for the profit from the swings of the market.…

Q: What is the formula for the cost of preferred stock?

A: With flotation cost in %: Cost of preferred stock = Preferred dividend / (Price*(1-Flotation cost)

Q: how does the stock market work?

A: Stocks in the stock market represent ownership of equity in a public firm.

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: How a Stock Trade Begins?

A: Stock trading requires the opening of a specific type of account which is meant to hold stocks.…

Q: how do I compute or calculate valuation and relative value measure to assses stock correctly?…

A: Valuation of a company can be done through either of the two methods, absolute valuation or relative…

Q: find out market capitalization  and preffered stock?

A: It is defined as the total market value of a publicly traded company whose stocks are traded based…

Q: How to calculate market price range of common stock?

A: Market price per share: A market price per share is total value of company divided by number of…

Q: Which exchange’slisted stocks have the greatest market value?

A: A stock exchange is a centralized venue for buying and selling stocks of publicly traded firms.

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 individual stocks and the stock market

A: Investing means allocating the funds in different securities, assets, or businesses with the motive…

Q: How do we determine the book value of a stock?

A: Book value is the value of total equity or net asset value of the business. The book value of stock…

Q: What is the Treasury stock? Give an example?

A: Stockholders’ Equity Section: It is referred to the section of the balance sheet that shows the…

Q: What is current stock price?

A: Stock means equity part of the company. Companies’ capital structure may contain debt, equity, and…

Q: What effect does Stock Price have on call option price?

A: Call options are contract which gives the buyer the right but not the obligation to buy the…

Q: What will be the current stock price?

A: The current price of a stock is the most recent selling price of a stock in the market. It is the…

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: What is margin requirement (for stock)?

A: While trading for the investments in the stock market, there are two methods through which investors…

Q: uss whether the stock pric n in the stock market.

A: Efficient Market Hypothesis -:An significant debate in investors is whether the stock market is…

Q: What determines the price-earnings ratio for a stock?

A: The price earring ratio is one of the most widely-used ratios by investors and analysts to determine…

Q: Why Are Stock PricesSo Volatile?

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

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.