The market price of a share of common stock is determined by:

Related MCQs

• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• If the intrinsic value of a share is less than the market price, which of the most reasonable?
• What are the earnings per share (EPS) for a company that earned Rs. 100,000 last year in after-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retained earning at the year end?
• The common stock of a company must provide a higher expected return than the debt of the same company because
• ______________ is the price at which the bond is traded in the stock exchange.
• _____________ refers to the price at which an asset can be traded in the market
• ___________ value is used when an investor wants true or real value on basis of analysis of fundamentals without considering the prevailing price in the market
• A firm has EBIT of . 50,000. Market value of debt is . 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:
• Buying a security from low priced market and selling at high priced market is called -------------
• The value of a firm on the basis of net operating income approach can be determined by dividing the earnings before interest and taxes by