Suppose investors decrease the rate of return they required to invest in a company's common stock....
Suppose investors decrease the rate of return they required to invest in a company's common stock. everything else equal. what effect will this decrease have on the market value of the company's stock?
A. The stock's market value should decrease.
B. The stock's market value should not change.
C. The stock's market value should increase.
Homework Answers
The effect this will have on the market value of the company's stock is:-
C. The stock's market value should increase.
Rate of return and market value share an inverse relationship with each other.
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