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

Q: What is preferred stock and common stock?

A: Paid-in capital: The aggregate sum of cash or other assets received by a corporation from its…

Q: Why does the dilutive effect of stock options called the treasury stock method?

A: Treasury Stock Method: In this method, a company that receives exercised amount on the outstanding…

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: How does preferred stock differ from common stock?

A: Capital Stock of CorporationCapital stock is issued by the corporation to raise funds from the…

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: How can you chart and predict falling or rising wedges for stocks?

A: Short-term, medium-term, and long-term trends: Stock Prices move either upwards, downwards, or…

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: Differentiate between the terms expected rate of return, required rate of return, and historical…

A: The expected rate of return is the normal rate of return that the speculation can anticipate. By and…

Q: What are the similarities and differences between an overall rate and an equity dividend rate?

A: Answer: Equity is nothing but the difference between asset owning values and liabilities against…

Q: what is the stock market, and why is it important?

A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of…

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: What is relationship between the market risk of a stock and it's expected return?

A: Expected return is directly related to the market risk . Market risk is represented by beta. Higher…

Q: Return formula for common stock?

A: Applying capital asset pricing model (CAPM),

Q: Explain stock market index, provide example and what is the importance?

A: Stock market or share market is an aggregation of purchasers and sellers of stocks and helps…

Q: how does the stock market work?

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

Q: What is meant by the term “distributionpolicy”? How has the mix of dividend payoutsand stock…

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

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: How do you calculate dividend yield for stock?

A: dividend yield is the ration of dividend paid by the firm divided by price of share of the 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: Define actual rate of return on stock

A: Actual rate of return on stock

Q: What are the arithmetic and geometric returns for the stock?

A: Arithmetic and Geometric mean are used to calculate the expected mean of the stock Arithmetic Mean…

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: how to calculate perpetual preferred stock

A: Perpetual preferred stock is one which continues to give or distribute dividend for an infinite…

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 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: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How does the current price of a stock depend on its own past values, as well as the current and past…

A: Market index of stock gauges the stock market which assists investors to analyze the market…

Q: Why are stocks categorized in terms of market capitalization

A: The total market worth of a firm expressed in dollars is its market capitalization, also referred to…

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: How can the model be used to estimate the predicted return ona stock?

A: Predicted rate of return: Predicting a rate of return is the method of calculating future rate of…

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: Is the Stock Market Efficient?

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

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: what does the term par value of stock mean

A: The company will issue shares to the public for raising the capital for the company. The company can…

Q: what is the dividend paid by this stock?

A: Required rate of return=Annual dividend/Current value

Q: What does a large stock dividend known as?

A: Stock dividends are dividend declaration and distribution of stock dividend. There are two types of…

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…