The IRR rule states that if the internal rate of return (IRR) on a project or investment is greater than the minimum required rate of return - the cost of capital - then the decision would generally be to go ahead with it. Conversely, if the IRR on a project or investment is lower than the cost of capital, then the best course of action may be to reject it.
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122.22
The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.
A -33.33 (recurring) % rate of return.
A population with a death rate greater than a birth rate has a declining population.
An increase in a firm's expected growth rate would normally cause its required rate of return to
expected rate of return
Question 4 How does the cost of debt differ from the required rate of return for bondholders?
Question 4 How does the cost of debt differ from the required rate of return for bondholders?
Relationship btwn an investor's required rate of return and value pf security
relationship between WACC and required rate of return.
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
Require Rate of Return is formulated as: Riskfree Rate + Beta(Risk Premium) Required Rate of Return = 4.25 + 1.4 (5.50) = 11.95%
The value of the required rate of return would be the same percentage. The investment will not be purchased by a buyer if the percentage is not fixed, solidifying the rate of return when the investment is sold. The value may be more, however, but not less.
13.3
required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from investing in a bond
Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return?