Stocks expected return exceeds its required return

Assignment Help Financial Management

Reference no: EM13811510

If in the opinion of a given investor a stock's expected return exceeds its required return, this suggests that the investor thinks

a. the stock should be sold.

b. management is probably not trying to maximize the price per share.

c. the stock is experiencing supernormal growth.

d. the stock is a good buy.

e. dividends are not likely to be declared.

Reference no: EM13811510

Questions Cloud

Tax consistent with a mechanistic view of government : Obesity is perceived to be a national health problem in the United States. One suggestion to deal with this problem is a “fat tax.” The idea is to levy a tax on foods containing more than a government prescribed percentage of the daily minimal fat in..

Potential estate tax liability-estate planning case study : The goal of this Estate Planning Case Study is to make adjustments to an existing estate plan to eliminate the potential estate tax liability. Today is January 2014 John has been your financial planning client for over ten-years. He is 61 and married..

Issue of possible discrimination or improper actions : This allows the employer to avoid any issue of possible discrimination or improper actions in the hiring and promoting procedure.

What were the null and alternative hypotheses : What were the null and alternative hypotheses

Stocks expected return exceeds its required return : If in the opinion of a given investor a stock's expected return exceeds its required return, this suggests that the investor thinks

Discuss what managers can do to successfully work with the o : Impact of Globalization Paper:In this paper, provide a descriptive title or heading for your paper by focusing on topics or countries that interest you, and then discuss the following concepts: 1) globalization and the drivers of globalization; 2) th..

Identify three actors from your film and classify each : Identify three actors from your film and classify each according to the types of actors listed in your text. Use specific references to the film and pay special attention to how these decisions impacted characterization.

What is the firms required rate of return : Cooley Company's stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return?

User Account

All Pages