If a company returns more than the required rate of return on a stock, what happens to the value of that stock?

Name: If a company returns more than the required rate of return on a stock, what happens to the value of that stock?
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Question

Quizplus · Accepted Answer

When a company returns more than the required rate of return on a stock, it indicates that the company is performing better than investors' expectations, leading to increased demand for the stock and, consequently, a rise in its price.

If a Company Returns More Than the Required Rate of Return