In order for investors to purchase stock in a company, they will require a return of at least a certain amount. The amount the investor requires depends on which of the following?

Answers



The return an investor requires for purchasing stock in a company depends on numerous factors, including the current and expected level of risk, the investor's required rate of return, the market rate of return, the company's policy for paying dividends, and the company’s current market value.

The risk associated with a company's stock determines the required return an investor needs before they can purchase the stock. More risk requires a higher return in order to entice investors. The higher the potential return, the more attractive the investment will be. Additionally, the required return can also be influenced by the current market rate of return. If the market rate of return is favorable, investors may be willing to accept a lower return on their investment. Additionally, the company's policy for paying dividends and its current market value can also influence the required return, as investors may decide to purchase stock if they believe they can earn a return on their investment beyond just dividends.

Answered by ybrandt

Production opportunities, Time preferences for consumption, Risk, Inflation (ALL OF THE ABOVE)

Answered by Brianna Baker

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