What is margin requirement (for stock)?

Q: Does the component cost of preferred stock include or excludeflotation costs? Explain

A: Preferred Stock: The stock that has no right over the decision making of the company against which…

Q: What is listed stock?

A: It is one significant component of capital market. It is a organized market for buying and trading…

Q: What’s the difference between a stock’s current market price and its intrinsic value?

A: Stock Current market price is the price at which the stock traded in the market.   Intrinsic value…

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: Common stock has par value, and market value. Explain briefly these values. Which one is most…

A: Par value of common stock : Par value corresponds to the equity valuation specified in the corporate…

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: 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: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: Define cost of preferred stock

A: Preferred stocks are the stock which possesses some features of debt and some features of equity.…

Q: What are the advantages and disadvantages of preferred stock from the perspectiveof its issuer?

A: Answer: From the perspective of the issuing entity, the main benefit of preferred stock issuance…

Q: What are the basic differences between preferred stock and common stock?

A: Stock:A security issued in a form of certificate is represented as stock, which denotes the right of…

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: 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: Is stock price maximization good or bad forsociety?

A: Answer: Maximization of stock prices occurs because it benefits the society at large. The stock…

Q: On what do stock valuations rest?

A: The answer:

Q: What is the difference between cumulative and noncumulative preferred stock?

A: Cumulative preference shares:   Under a cumulative preference share, if the dividend payments have…

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: Explain required rate of return on stock

A: The required rate of return is the minimum acceptable rate of return that an investor expects to…

Q: Explain the significance of par value. Does par value indicatethe reasonable market price for a…

A: Significance Of Par value: *Par value is the face value of the shares, the principal amount investor…

Q: compared to the company stock?

A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…

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: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

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: What is meant by par value, and what is its significance to stockholders?

A: Par Value Par value is also known as face value. Par value is the value which is mention on the…

Q: What is the firm’s cost of preferred stock?

A: Introduction: Preferred stock is one of two types of securities sold by any company, and the other…

Q: How GARCH (generalized ARCH model) model is applied to Stock Price Volatility?

A: GARCH model is one of the models that is usually used by the financial analysts. The financial…

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: 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: What role does sentiment play to explain stock price volatility? Explain

A: The role of emotion in determining the price of a company is one of the most significant aspects to…

Q: What is preferred stock?

A: These are stocks which give their owners certain preferential rights. The owners of these stock…

Q: What are the advantages and disadvantages of preferred stock tothe issuer?

A: Preference shares, which are issued by companies seeking to raise capital, combine the…

Q: How do restricted stock awards differ from restricted stock units (RSUs)?

A: Restricted stock: Restricted stock is the portion of shares held up by the management, to be issued…

Q: What is current stock price?

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

Q: What is the expected return for stock A?

A: Expected Return: It is computed by the sum of individual returns proportionately weighted by each…

Q: What is restricted stock?

A: Definition: Common stock: Common stock is the instrument used by the company for raising funds from…

Q: Why are flotation costs higher for stock than for debt?

A: Floatation cost is the cost that the company has to bear when it issues new securities in the…

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: How is a stock valued? What are the key variables considered in the valuation?

A: There are many methods of valuation of stock some are based on earnings and growth of stock and…

Q: How do you calculate conditional volatility of a stock returns?

A: Volatility represents how large an asset's price swing around the mean price i.e the statistical…

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: hat is the relationship between the expected return of a stock and its fair expected return? When is…

A: Step 1   The anticipated return is the profit or loss that an investor expects from a known…

Q: Define Stockout costs.

A: Stock out costs are the cost which arises when an organization is not able to fulfil the demand due…

Q: What is stock split? Distinguish between a bonus issue and a stock split.

A: Stock Split Means: it refers to that a company divides its existing share into multiple shares or a…