All categories

2 years ago

One extensive study found that about _______ of financial managers use capm to estimate cost of capital

1 answer:

3 0

Monetary managers can hire CAPM to attain an estimate of the value of fairness capital. Arriving at a cost of equity for evaluating cash flows inside the destiny.

The capital asset pricing model CAPM is an idealized portrayal of ways financial markets rate securities and thereby determine anticipated returns on capital investments. The model offers a technique for quantifying danger and translating that threat into estimates of predicted return on fairness.

If the CAPM is used to estimate the value of fairness capital, the predicted excess marketplace return is identical to the: return on the inventory minus the threat free charge.

Learn more about CAPM here

brainly.com/question/24158909

#SPJ4

You might be interested in

How would define industry? What is the industry of a store that sells fishing poles

swat32

Answer:

An industry is a group of companies that are related based on their primary business activities. In modern economies, there are dozens of industry classifications. Industry classifications are typically grouped into larger categories called sectors.

fishhook, spinner, cork, gig, fishing pole, bobber, fizgig, landing net, fishing rod, fishgig, bobfloat, harpoon, lance, fishing line, reel, bob, gaff, spear.

Explanation:

Hope it helps you.

Brainlist me if you like.

- GumbbleBe3

6 0

2 years ago

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventor

Y_Kistochka [10]

Answer:

d. $141,000

Explanation:

As the following information is given

Purchase of raw material = $165,000

Beginning Raw material balance = $22,000

Completed direct material = $141,000

Completed indirect material = $13,000

Since the work in progress includes only direct material i.e $141,000 as indirect material is allocated to the overhead account. Therefore, only $141,000 of raw material is transferred to work in process account

So other information which is mentioned is ignored

3 0

3 years ago

Consider the following transactions for Huskies Insurance Company: Equipment costing $30,000 is purchased at the beginning of th

Reika [66]

Answer:

a. Dr Depreciation expense $5,000

Cr Accumulated depreciation $5,000

b. Dr Interest receivable 750

Cr Interest revenue 750

c. Dr Unearned revenue 2,000

Cr Service revenue 2,000

Explanation:

Preparation to record the necessary adjusting entry for Huskies Insurance at its year-end of December 31.

a. Dr Depreciation expense $5,000

Cr Accumulated depreciation $5,000

(Being to adjust for Depreciation of Equipment)

b. Dr Interest receivable 750

Cr Interest revenue 750

(30,000*5%*6/12)

(Being to adjust for accrued interest)

c. Dr Unearned revenue 2,000

Cr Service revenue 2,000

(8,000*3/12)

(Being to adjust for accrued rent revenue)

6 0

3 years ago

Whether you operate your business from a small office at home or in a large plant environment, it's still referred to as your

zysi [14]

The correct option is C.
An office building refers to a structure that is used primarily for the purpose of conducting business. The office may be large or small, it may be located in a large office environment or in a residential apartment. The basic thing about office building is that, it is the location where administration, clerical services. consulting services and other services related to business take place.

4 0

3 years ago

Read 2 more answers

Simple Interest:

Naddik [55]

Option answer:

c. Interest = $54 and Balance = $1254

Answer:

A = $1,254.00

I = A - P = $54.00

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year.

Solving our equation:

A = 1200(1 + (0.03 × 1.5)) = 1254

A = $1,254.00

The total amount accrued, principal plus interest, from simple interest on a principal of $1,200.00 at a rate of 3% per year for 1.5 years is $1,254.00.

6 0

2 years ago