What is the investor’s expected after-tax internal rate of return on equity invested (ATIRR)?

Q: Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof…

A:

Q: Define Return on equity.

A: Return on equity (ROE): This financial ratio evaluates a company’s efficiency in using stockholders’…

Q: When screening for potential equity investments based on return on equity, to controlrisk, an…

A: Return on equity = Net Income / Shareholder's equity

Q: Return on equity formula?

A: RETURN ON EQUITY (ROE) IS A RATIO THAT PROVIDES INVESTORS WITH INSIGHT INTO HOW EFFICIENTLY A…

Q: what would be the purchasing power of the total return on their investment

A: Purchasing Power: Purchasing power refers to the actual power of buying the goods of services with…

Q: What is share capital retirement? What is the effect of this? Discuss.

A: Share Capital Share capital is the fund which are raised from the public for the operations of the…

Q: what sense is a firm's WACC also the rate of return that should be earned on its investments?

A: Step 1   The WACC of a company is the overall needed return, which is the discount rate that should…

Q: How is a profitability index figured as it relates to capital budgeting and annuities?

A: Capital Budgeting is a decision making process. With different investment options available, the…

Q: What are the consideration that need for dividend pay out policy?

A: The dividend is referred to as the share of profits, which used to be distributed to the company's…

Q: What are investment returns?

A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…

Q: How can we measure the return on common equity?

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: Describe the Procedures used to determine the rate of return internal to nonsimple investments?

A: Procedure to compute the rate of return internal to non-simple investmentIt is an investment for…

Q: explain the strategies that enhance the return on equit

A: Return on equity is a very important financial ratio. This ratio is essentially a measure of…

Q: Define Rate of return on stock investment.

A: Capital Stocks:   Common stock and preferred stock are the two types of capital stocks. Common…

Q: . Which of the following statements regarding available-for-sale equity investments is true? a.…

A: As the name suggests the available-for-sale equity or securities are the equities that are held to…

Q: Discuss the pros and cons of the accounting rate of return as an investment criterion.

A: Definition: Average rate of return method: The average rate of return is the amount of income that…

Q: What is the estimated cost of equity using thedividend growth approach?

A: Introduction: Dividend growth model is an approach which assumes dividends are that at a constant…

Q: Define capital gains yield

A: Capital gain yield in finance is an important concept because it helps the investors to know the…

Q: With all investments, there are an expected percentage return and certain types of return that can…

A: A bond is a fixed-income security that symbolizes the debt owed to a lender by a borrower (typically…

Q: Whats is the sum of the expected dividend and the capital gains yield called

A: total yield = capital yield + dividend yield

Q: The sum of the expected dividend and the expected capital gains yield is called a. Required rate of…

A: Investors invest in any security or investment with a motive to generate returns and increase…

Q: What does “PE” stand for in the PE ratio, and how do investors use this ratio?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: What’s is the Return on Average Equity?

A: The return on average equity (ROAE) is a financial metric that helps to evaluate the profitability…

Q: What is the projected net income?

A: A budget can be defined as a quantitative statement developed to ascertain the funds required…

Q: thod of income approach that consider the factor

A: Introduction: When valuing a property that generates a source of income, the income technique is…

Q: Why is the ex-dividend date important to investors?

A: One business day before the record date of a stock is referred as ex-dividend date.  Whenever a…

Q: How does a company determine the interest rate it uses in making a netpresent value (NPV) decision?

A: The net worth of the project after the deduction of the current worth of the cash outflows from the…

Q: The profitability index is another method to evaluate capital investments. If you are trying to…

A: A profitability index is a quantitative tool that can help decide whether to accept or reject an…

Q: what is the after tax ytm? what is the cost of common stock? what is the cost of preferred stock…

A: Yield to maturity considers the coupon payment along with the price of the bond. Yield to maturity…

Q: How you can explain that the stockholders are receiving an adequate return on their investment?…

A: Adequacy of return In simple words, return on equity can be defined as the amount of dividends that…

Q: of percentage analysis? Why in your opinion companies conduct percent analysis? How in your opinion,…

A: Percentage is applicable once it's vital to grasp what percentage of the participants gave a…

Q: How can fi nancial statement analysis be used to screen for potential equity investments?

A: The financial statement analysis is used to analyze the financial statements of a company. The…

Q: Why are equity investments initially recognized at cost and valued differently at a subsequent…

A: Equity investments are those investments which are made by one person in some other company by…

Q: Discuss the impact of investor sentiment on stock returns conditional on economic conditions

A: Investor's sentiment means the attitude of the investors toward different securities or even the…

Q: WHAT IS THE EQUITY INVESTMENT?

A: Equity: Equity refers to that part of the company’s capital which is raised by issuing equity…

Q: What are Quoted Investments ?

A: Quoted investment: It is an accounting term for investment in share or debenture, which is quoted on…

Q: what is return on investment capital and profitability analysis?

A: Both return on investment and profitability analysis are  profitability ratios

Q: What tax rate should be used in calculating the taxes on the investment's projected income?

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: How do you calculate net income if retained earning and dividend is given?

A: Net Income = Ending retained earnings - Beginning retained earnings + Dividend

Q: Discuss the three components of an investor's required rate of return on an investment

A: The rate which is expected by an investor from its investment over a time period is referred to as…

Q: The fisher effect primarily emphasizes the effects of on an investor's rate of return

A: The fisher effect states that: Long term nominal interest rate  = real interest rate + expected…

Q: What is the payback method of analyzing capital investments?

A: Formula: Payback period = Initial Investment / annual cash inflows

Q: arbitrage profit can an investor earn on an investment value

A: In order to earn arbitrage profit we first need to decide which currency to borrow and which to…

Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?

A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…

Q: Would you expect positive covariances of returns between different types of assets such as returns…

A: Covariance is the measure of the degree to which two variables move together relative to their…