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Hi,Dear sir plz brief it.
A increase in shareholder required rate of return will lead to fall in share price.
sorry for asking too much quetions.
Because the market value of the share is the present value of the expected future dividends discounted at the shareholders required rate of return.
If you discount at a higher rate then you get a lower present value.I do suggest that you watch our free lectures on the valuation of securities.
Thankiou so much sir and opentution.
I got it answer from mcq,s solution provide in lectures on past paper by opentution.
Opentution is rock.
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