Answer:
False.
It is not only the CAPM method that always provides an accurate and reliable estimate. The three methods look at the same issue from three different angles.
Explanation:
Despite their individual limitations, the methods have been found to provide some guidance to investors. The CAPM limitation lies in its use of historical data. The dividend growth method cannot be applicable to all firms, as it applies only to firms that pay dividend. Finally, the bond-yield-plus-risk-premium method suffers from the many unsubstantiated assumptions underlying it.
A. rental payments
A fixed expense is an expense that doesn't change from month to month. It stays the same. Clothing purchases and movie tickets vary and groceries don't always cost the same every time you go shopping.
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B) Related linked types of diversification strategies are characterized by less than 70 percent of revenue coming from the dominant business and limited links between businesses.
This level of diversification is visible in a corporation that operates its sports specifically on a single or dominant business. The company is in a single commercial enterprise if its sales are more than 95 percent of the total sales.
There are three types of diversification techniques:
- Concentric diversification.
- Horizontal diversification.
- Conglomerate diversification.
Corporations using diversification as a dominant method begin operations in one key industry and then amplify the firm by means of buying organizations or developing new corporations. The extra corporations, at the same time as not at once concerned inside the key industry, usually provide items and services that decorate the authentic industry.
The question is incomplete. Please read below to find the missing content.
Which of the following types of diversification strategies is characterized by less than 70 percent of revenue coming from the dominant business and limited links between businesses
A)Corporation link
B)Related linked
C) Limited partnership link
D) Unlimited partnership link
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Answer:
Option B is correct ( Will any of the fixed costs go away? If yes, ignore them in the decision process)
Explanation: