How does a stock price play a role in ROA or ROE

Q: Discuss the main factors that influence the prices of securities on a stock exchane.

A: There are many factors that influence the prices of securities.

Q: What is money market preferred stock?

A: Preferred stock: The stock that is entitled to have priority over other common stock and with fixed…

Q: Why does the dilutive effect of stock options called the treasury stock method?

A: Treasury Stock Method: In this method, a company that receives exercised amount on the outstanding…

Q: .What is the value of the stock?

A: The constant growth model is a method used for finding the stock price. It is also called the…

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: whats the stockholders equity for this?

A: Financial statement means the trading and profit and loss account and balance sheet of the company…

Q: What does the rate of return on common stock show, and how is it calculated?

A: Rate of return on the common stock: It signifies the amount of net income that has been retained for…

Q: How does eps affect the stock market

A: The earning per share of the company will be reflective of the total earnings made for each of 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: How will the presence of these and other similar stock options affect NEV’s earnings pershare?

A:

Q: What factors are important when calculating the intrinsic value of a stock?

A: Intrinsic value is the current value of the stock. It is calculated by using the following formula:…

Q: What is the ‘intrinsic value’ of a stock and what does it tell us?

A: Intrinsic value refers to a company's, stock's, currency's, or product's expected or calculated…

Q: How do stock dividends and splits affect stock prices?

A: Answer: Unlike cash dividends, stock dividends and stock splits also influence the market price of a…

Q: What are the main stock- and firm valuation methods and is there a relationship between the stock…

A: Value of the firm is the market value of the firm at its present market value of eah share.

Q: On what do stock valuations rest?

A: The answer:

Q: Where Is Stock Traded?

A: Stock trading: Stock trading is defined as the purchasing and selling of shares in a specific…

Q: What is market auction preferred stock?

A: Preferred stock: Preferred stock is a hybrid security that mixes characteristics of both common…

Q: what is the stock market, and why is it important?

A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of…

Q: Stock market analyst. Explain isnvesting style

A: Stock market Analyst:- A stock market analyst is an equity analyst whoes main work is to find good…

Q: Define the term Stock Appreciation Rights.

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

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: how does the stock market work?

A: Stocks in the stock market represent ownership of equity in a public firm.

Q: What is a stock split?

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

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: find out market capitalization  and preffered stock?

A: It is defined as the total market value of a publicly traded company whose stocks are traded based…

Q: How to calculate market price range of common stock?

A: Market price per share: A market price per share is total value of company divided by number of…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What does it mean to say “stock prices are nonstationary”?

A: Stock prices will be discovered by continuous interaction of demand and supply. Stock prices are…

Q: Why are stocks categorized in terms of market capitalization

A: The total market worth of a firm expressed in dollars is its market capitalization, also referred to…

Q: What is current stock price?

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

Q: What effect does Stock Price have on call option price?

A: Call options are contract which gives the buyer the right but not the obligation to buy the…

Q: How to know what price target to buy a stock?

A: A price target is an analyst's forecast for the future value of a commodity. Price targets can apply…

Q: Distinguish between common stock and preferred stock,and explain the difference between market value…

A: Common stock is a security that represents ownership in a corporation. Holders of common stock elect…

Q: How does market cap effect the stock market?

A: Market capitalization is given by the formula: Market capitalization = Price per share x No. of…

Q: What will be the current stock price?

A: The current price of a stock is the most recent selling price of a stock in the market. It is the…

Q: How does pe effect the stock market

A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…

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: What is margin requirement (for stock)?

A: While trading for the investments in the stock market, there are two methods through which investors…

Q: uss whether the stock pric n in the stock market.

A: Efficient Market Hypothesis -:An significant debate in investors is whether the stock market is…

Q: Divided discount model DDM how to the valuation of the aggregate stock market?

A: What is DDM (Dividend discount model)? The Dividend Discount Model (DDM) is a quantitative strategy…

Q: What determines the price-earnings ratio for a stock?

A: The price earring ratio is one of the most widely-used ratios by investors and analysts to determine…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.