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andrezito [222]
2 years ago
12

The expected return on equity is Blank______ to leverage. Multiple choice question. positively related unrelated negatively rela

ted
Business
1 answer:
VMariaS [17]2 years ago
3 0

Positively Related;

MM Proposition II states that the expected return on equity is positively related to leverage, the required return on equity is a linear function of the firm's debt to equity ratio, and the risk to equity increases with leverage.

More about MM Proposition II

According to the second proposition of the M&M Theorem, a company's cost of equity and level of leverage are directly inversely related. Increased leverage increases a company's likelihood of defaulting. As a result, in order to make up for the increased risk, investors frequently demand a higher cost of equity (yield).

Like proposition I this also has 2 propositions :

  • With Tax
  • Without Tax

Learn more about the proposition here:

brainly.com/question/14041475

#SPJ4

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If Ralph has $2,900 in stable gross monthly income, what is the maximum total debt allowed for Ralph by conventional lenders
dezoksy [38]

Based on Raph's stable gross monthly income, the maximum total debt allowed per month is<u> $1,044</u>

Most conventional lenders prefer to lend to a person whose debt to income ratio is 36% and below.

Ralph's maximum debt allowed is therefore:

<em>= Debt to income ratio x Stable gross income </em>

= 36% x 2,900

= $1,044

In conclusion, Ralph's maximum debt is $1,044

Find out more about debt to income ratio at brainly.com/question/24814852.

8 0
2 years ago
Negative inflationary surprises lead to a(n):____________.
Vlada [557]

Answer: increase in real interest rate

Explanation:

Negative inflationary surprises lead to an increase in the real interest rate. The real interest rate is simply defined as the rate of interest that a saver, investor, or a lender will receive after inflation ahs been allowed.

It should be noted that the real interest rate is the nominal interest rate minus inflation. Therefore, a negative inflationary surprises lead to a rise in the real interest rate.

3 0
3 years ago
You own a stock portfolio invested 22 percent in Stock Q, 23 percent in Stock R, 42 percent in Stock S, and 13 percent in Stock
Lina20 [59]

Answer: 1.20

Explanation:

The Portfolio beta will be a weighted average of the individual stock betas.

Portfolio beta = (22% * 0.88) + ( 23% * 0.94) + ( 42% * 1.34) + ( 13% * 1.79)

= 0.1936‬ + ‭0.2162‬ + ‭0.5628‬ + ‭0.2327‬

= ‭1.2053‬

= 1.20

5 0
3 years ago
The term xenophobia can best be defined as:
Crank
The best answer is A
3 0
4 years ago
Read 2 more answers
5 importance of communication​
olga55 [171]

Answer:

1-Communication is important to express oneself.

2-Need for effective leadership.

3-Helps in proper planning.

4-Improve public Relationships.

5-Helps in providing the full information.

Explanation:

Good communication also improves relationships, and in your personal life with friends and family members. Listening carefully and offering quality feedback helps people to feel heard and understood. This, in turn, nurtures mutual respect. Communication is important to express oneself. It also satisfies one's needs. One should have effective communication for advancement in the career. In your personal life, effective communication skills can smooth your way and your relationships with others by helping you to understand others, and to be understood. Communication not only conveys information, but it encourages effort, modifies attitudes, and stimulates thinking

I hope it helps!

Please mark me as the brainliest. (I need it)

A piece of advice for every learner:

Never stop believing In yourself, And never underestimate your ability As it takes time To be a master in anything.

You can do it!

You can achieve your goals!

8 0
2 years ago
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