How companies accuse investors make their quotations fall
Sometimes, companies accuse investors of performing credit sales which they make their quotations fall. Is it true?
Expert
This is true: there are companies which accuse investors who perform credit sales of making their quotation fall. Although the stock market is only a financial market and prices fall while there are more sales than purchases and vice versa. There investors who perform credit sales and also investors who sell their shares – with those who do not buy – are all evenly responsible for the fall in prices. Why not accuse those investors who do not buy, as well? If that position were consistent, they must also accuse the investors who chose to buy of forcing the price up!
When computing the WACC, is the weighting of the shares done and the debt with book values of debt and shareholder’s equity or along with market values?
What is nonlinearity in option pricing model?
Cost of capital aspect: Estimation of WCR is beneficial from the point of view of cost of capital too. A sound working capital position is beneficial from the point of view of both owners and lenders of the company. A sufficiently positive position me
Assume that the risk-free rate is 1% and the expected market return is 9%. You are considering purchasing Super Soft stock, which currently sells for $100 a share and will pay its next (annual) dividend of $1.00 exactly one year from today. Super Soft is considered to
Did you notice the Vueling case? How is this possible that an investment bank sets the objective price of its shares in €2.50 per share upon the 2nd of October, 2007, just after replacing Vueling shares at €31 per share in J
We were assigned a valuation of a pharmaceutical laboratory’ shares. Which valuation method is further convenient?
Is Capital Cash Flow identical with Free Cash Flow?
ABC Corporation stock sells at $27 per share and its dividend per share is $1.20. ABC has price-earnings ratio of 16. The company contains $40 million worth of bonds, selling at par, with 8.5% coupon. The EBIT of ABC is of $12 million and its tax rate is 30%. Calculat
Taurus Corporation needs a computer, which it can buy for $100,000. Taurus will depreciate the computer uniformly over its useful life of 5 years. An investment tax credit of 7% is also available, and the computer will have no residual value. Taurus plans to borrow th
Stock Market Crash was responsible for the Great Depression. Middle class families lost all their savings as they had gambled the market on margin.Those banks which were under the loan ofbrokers’ started removing money out of the savings account
18,76,764
1936077 Asked
3,689
Active Tutors
1421162
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!