The ______ is a common term for the market consensus value of the required return on a stock.

Question

Quizplus · Accepted Answer

Market capitalization rate (also known as the "cost of equity") represents the expected rate of return that investors require to invest in a particular stock. It is a key component in determining the intrinsic value of a stock. The dividend payout ratio (A) represents the proportion of earnings paid out as dividends, the intrinsic value (B) is the perceived true value of a stock based on qualitative and quantitative factors, and the plowback rate (D) is the proportion of earnings that a company retains to reinvest in the business rather than pay out as dividends.

The ______ Is a Common Term for the Market Consensus