Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:

Related MCQs

• ----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return
• If risk free rate of return is 8%, Return on market portfolio is 12%, beta = 1.5, then the expected rate of return according to CAPM is equal to
• The cost of capital is the rate of return of a company must earn on investment to maintain ----------------
• 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 .
• A firm is said to be financially unlevered firm if the firm has ……….
• A company has earnings before interest and taxes of Rs1,00,000. It expects a return on investment at a rate of 12.5%. What is the total value of the firm according to MM Theory?
• ------ refers to the minimum return expected by its suppliers
• 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:
• When the required rate of return is less than the coupon rate the premium on the bond-
• If the Real rate of return is 10% and Inflation s Money Discount Rate is: