For a Stock to Be in Equilibrium, Two Conditions Are

question 130

True/False

For a stock to be in equilibrium, two conditions are necessary: (1) The stock's market price must equal its intrinsic value as seen by the marginal investor and (2) the expected return as seen by the marginal investor must equal this investor's required return.

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Definitions:

Remote Location

A place situated far from the main centers of population and often difficult to access.

Management By Walking Around

Managers intermingling freely with workers on the shop floor or in the office, as well as with customers.

Horizontal Communication

The exchange of information, ideas, and messages between individuals or departments on the same level within an organization.

Open Office Space

A layout for offices that eliminates most dividing walls and private offices to create a more collaborative and less hierarchical environment.