Using the company you have selected for your current event paper [or any publicl
ID: 2683441 • Letter: U
Question
Using the company you have selected for your current event paper [or any publicly traded company of your choice], construct or set up an equation to calculate the expected or required rate of return for the company using the APT model. You may use hypothetical or estimated numbers to complete this conceptual problem. HINT:The goal here is for you to assess the relative significance of each of the factors that will affect the required or expected rate of return specific to your company and demonstrate you understand how this equation is actually used for investment analysis.Explanation / Answer
ANSWER:
This equity makes you a partial owner of the company and entitles you to a share of its profits. Equity pays you a return on your investment in dividends and capital gains. Dividends are a payout of annual profits to all shareholders. Capital gains are the profits you make by selling your stock shares at a higher price than you paid for them. The total tax cost of common equity is the sum of taxes on dividends and capital gains. Dividends are taxed as income.
Their orders usually end up with a professional at a stock exchange, who executes the order of buying or selling.Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges andcommodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of stock exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders.
Banks, insurance companies and hedge funds, and also publicly traded corporations trading in their own shares. Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors.
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