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almond37 [142]
3 years ago
5

When estimating the cost of equity by use of the CAPM, three potential problems are (1) whether to use long-term or short-term r

ates for rRF, (2) whether or not the historical beta is the beta that investors use when evaluating the stock, and (3) how to measure the market risk premium, RPM. These problems leave us unsure of the true value of rs.
A. true
B. false
Business
1 answer:
Lubov Fominskaja [6]3 years ago
6 0

Answer:

The correct answer is A. true.

Explanation:

The cost of capital is a little less unique than the cost of debt. Equity is any financing raised through the sale of shares. Different people have different ways of measuring equity.

Some people prefer to simply use the CAPM or some other form of APT, estimating the cost of capital as an amount equivalent to the risk premium on the returns paid by the company to its investors. In this way, the returns generated in excess of the risk-free rate are considered the cost of equity.

This calculation is easy to use, but also takes into account the fluctuations in the value of the shares in the secondary market, which really has no cost to the company. Some people argue their benefits.

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RoseWind [281]
I don’t understand the question
4 0
3 years ago
Antonio lives in San Diego and runs a business that sells boats. In an average year, he receives $731,000 from selling boats. Of
Naya [18.7K]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
A full account of an event or series of events, usually told in chronological order, is called a:_______
sladkih [1.3K]

It's known as a story.

<h3>How Do Stories Work?</h3>

A story or narrative is a related series of events that is conveyed by language, including written or spoken words, images, both still and moving, body language, performance art, and music. In a narrative, any subject, genre, or style can be covered, and the events might be real or made up. Nonfiction and fiction can both be included in stories. There are stories to be told about everything that has ever happened, will ever happen, and will ever be. No matter the subject or the era, whenever you describe a series of events to someone, you are telling a tale.

Consequently, a tale is a comprehensive account of an event or series of events that is often told in chronological order.

<u></u>

For more information on the story, refer to the following link:

brainly.com/question/9148951

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7 0
1 year ago
Greg, the CEO of Organic Market, wants managers and employees to instruct each other about the organization’s chosen values and
malfutka [58]

Answer: Embed company culture

               

Explanation: Company culture refers to the values and beliefs of an organisation that runs at every level of the operations. Every employee of the organisation have to work by following that company culture.

In the given case, Greg is trying to make a communication channel in the organisation so that every employee can get a sense of the company culture that runs in the workplace.

Hence we can conclude that he is trying to embed the company culture.

8 0
3 years ago
you are considering starting a business to provide high quality bookkeeping services targeted to restaurants and other food serv
tiny-mole [99]

The potential for industry growth, whether it seems as though competition will only get stronger or weaker, and the company's competence in carrying out industry key success factors.

An organized subset of economic activity is the subject of this article. See Manufacturing and Industrial society for information on mass manufacturing and its implications. An industry is a division of an economy that creates a cluster of closely linked goods, services, or raw materials (for a list of additional uses, see Industry macroeconomics). One may cite the wood business or the insurance industry as examples.

Industry classifications often use a company's or group's major source of revenue when evaluating it to place it inside a certain industry. For instance, "statistical units" are categorized by the "economic activity in which they primarily participate" according to the International Standard Industrial Classification (ISIC), which is utilized directly or through derivations for the official statistics of the majority of countries worldwide.

Learn more about potential here

brainly.com/question/17058027

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7 0
1 year ago
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