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4 years ago

What happens to most projects' value under the CAPM if there is a sudden increase to its market-beta

Business

1 answer:

Nana76 [90]4 years ago

5 0

Answer:

Its value increases

Explanation:

Here are the options to this question :

its value decreases

Its value increases

Its value stays the same

According to the CAPM ,

expected return of an asset = risk free rate + (beta x risk premium)

If the beta increases, the expected return of the asset increases and the value of the asset increases

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In 2016, Southwest Airlines had negative net working capital of $(2,346) million and current assets of $4,498 million. The firm’

timofeeve [1]

Answer:

B. $6,844 million.

Explanation:

We know,

Net working capital = Current asset - Current liabilities

Given,

Net working capital = $(2,346) million

Current asset = $4,498 million

Putting the value into the formula, we can get

Net working capital = Current asset - Current liabilities

Current liabilities = - Net working capital + Current asset

Current liabilities = - (2,346) + $4,498

Current liabilities = $2,346 + $4,498

Current liabilities = $6,844 million.

Option B is the correct answer.

7 0

3 years ago

""The money and resources currently being devoted to the War on Terrorism reduces the quantity of other goods that we are able t

guajiro [1.7K]

Answer:

The Concept of Opportunity Cost

Explanation:

An opportunity cost is the cost associated with choosing to enjoy a particular benefit or pursue a particular venture at the expense of enjoying the benefit of its best alternate choice. In other words, when you enjoy the benefits of action A, the opportunity cost is the potential benefit of action B that one had to give up to achieve action A.

According to the question, money and resources devoted to war on terrorism represents the choice of the nation and the benefits maybe that the country is free from terrorist attacks. However, the opportunity cost is that the benefit of freedom from terrorist attacks comes at the expense of goods that could have been produced if the country should choose to pursue production of goods.

4 0

3 years ago

Cost Behavior; Contribution Format Income Statement [LO2-4, LO2-6] Harris Company manufactures and sells a single product. A par

VLD [36.1K]

Answer:

This question has two requirements answer of each requirment is given separately below.

Complete schedule of the company's total and unit costs

Variable cost per unit = (180,000/30,000) = $ 6 -A

Fixed rate per unit = (300,000/45,000 (assume)) = $ 6.67 -B

Total Fixed per unit = A+ B = $ 12.67

Total cost = 45,000 *12.67 = $ 570,000

Contribution format income statement for the year

Sales $ 720,000

Variable cost $ 270,000

Contribution margin $ 420,000

Fixed cost $ 300,000

Net operating income $ 120,000

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3 years ago

Which statement is a positive economic statement? A. Gov ernment should be subject to the same rules as all other institutions B

klio [65]

Answer:

C. There has been an increase in the rate of inflation

Explanation:

We should make the difference between positive statements and normative statements.

positive economics tries to understand behavior without judgments

while normaives, are the evalation on the positive economics. It prescribes a course of action like "higher education should be free"

In this case, only statment C is a positive statement as it does not inccurs in any sugestions. It only describes a situation without judgments on the oucome.

3 0

3 years ago

A major advantage of job specialization in business is increased _________. motivation opportunity for advancement opportunity f

Whitepunk [10]

Answer:

Productivity.

Explanation:

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.

3 0

3 years ago