Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume initially that the required return on inves

Assume initially that the required return on investments is 20%, expected dividend is 10 cents...

60.1K

Verified Solution

Question

Accounting

Assume initially that the required return on investments is 20%, expected dividend is 10 cents and a forecasted rice a year from now is $50. Everything else held constant, how would a decrease in the required return on investments to 10% affect the present stock price?

A. Will decrease the present price

B. Have no affect on it

C. Will increase the present price

D. Not enough information to answer

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Problem #5 : a) Two positive charges, Qa and Qb are placed on opposite sides of...

Biology
1.2K views

1) A woman with blood type A marries a man with blood type B. Their three...

Medical Sciences
1.2K views

In pathologic conditions where the alveolar membrane is thickened there is little effect on the exchange...

Programming
1.2K views

Purpose To learn how to use the JCF classes (HashSet, HashMap, TreeSet, TreeMap). You do not need to...

Medical Sciences
1.2K views

What 3 types of cells are found in lymph nodes?

Physics
1.2K views

An open organ pipe 45 cm long and a closed organ pipe 38 cm long...

Calculus
1.2K views

Use Gaussian elimination to solve the following system of equations 5u 10v 15w 30 2u...

Accounting
1.2K views

The following is an alphabetical listing of the accounts and their adjusted balances of Wallace...

Accounting
1.2K views

Washington State Fisheries, Incorporated, processes salmon for various distributors. Two departments, processing and packaging, are...

Accounting
1.2K views

On January 1, 2020, Ursa Industries acquired 65 Peak Inc. 7%, 10-year, $1,000 bonds. If...

Finance
1.2K views

Suppose for its deposit accounts Simpli Financial is offering to pay interest at a rate...

Finance
1.2K views

You are analyzing two companies that manufacture electronic toysIntelliGames Inc. and BrainGames Inc. IntelliGames was...