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astraxan [27]
3 years ago
13

You originally required a risk premium of 6 percent in addition to the rate of return on safe assets before you would purchase s

hares of Techno Company stock. If you and other investors reduce the risk premium you require to 4 percent, the price of Techno Company stock will:
Business
2 answers:
konstantin123 [22]3 years ago
8 0

Answer:

increase

Explanation:

One of the most common ways to determine the price of stocks is by using the Gordon growth model:

  • stock price = dividends / (required rate of return - growth rate)

the require rate of return = risk free rate + risk premium

if the risk premium decreases, then the required rate of return will also decrease. If the RRR decreases, then the denominator in the equation will decrease, and when that happens the value of stocks increases.

shusha [124]3 years ago
4 0

Answer:

The price of Techno Company stock will Increase

Explanation:

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The primary objective of growth mutual funds is capital appreciation with a high level of current income.
GenaCL600 [577]

The primary objective of growth mutual funds is capital appreciation with a high level of current income.

This statement is False.

A mutual fund is an investment vehicle that is professionally managed and collects money from a number of investors to buy securities.

The phrase is frequently used in the US, Canada, and India, while other countries with comparable arrangements include the UK's SICAV in Europe.

The primary investments of mutual funds are frequently categorized as money market funds, bond or fixed income funds, stock or equity funds, or hybrid funds.

Alternatively, funds can be characterized as actively managed funds, which aim to outperform stock market indices but typically charge higher fees, or index funds, which are passively managed funds that follow the performance of an index, such as a stock market index or bond market index.

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8 0
1 year ago
Background material, fact sheets, news releases, and sample photos are commonly found in what important business communication p
ad-work [718]

Answer: Background material, fact sheets, news releases, and sample photos are commonly found in a Press release

Explanation: A press release is an official statement that is sent to members of the media, to provide certain information related to an event or announcement made by the company, usually accompanied by certain material that documents the launch, such as photos and audiovisual material. These releases can save a company time to announce the events and with globalization, these releases can have a much greater reach than before.

8 0
2 years ago
The search for and utilization of the best methods used by competitors and non-competitors that lead to superior performance is
eimsori [14]

Answer:

Bench-marking

Explanation:

Benchmarking is the process that works for comparing the products, services, etc by the other companies who are dealing with the same type of business that refers to the best in the industry or performing superior performance.

It could be done either by the cost, quality, time, quantity, etc

The aim of doing this process is to gain the competitive advantage so that they get to know their strength, weakness, opportunities, and threats

7 0
3 years ago
what is the present value of $500 recieved at the end of each year for 15 years? ( assume thatt the first patyment is recieved a
Eva8 [605]

Answer:

$3800

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow fromyear 1 to 15 = 500

I = 10%

PV = 3800

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

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2 years ago
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