1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bas_tet [7]
3 years ago
11

Define the following terms: a. Cost of debt b. Cost of equity c. After-tax WACC d. Equity beta e. Asset beta f. Pure-play compar

able g. Certainty equivalent
Business
2 answers:
I am Lyosha [343]3 years ago
7 0

Answer:

Explanation:

A. Cost of debt: This is the rate of a company pays on its debts, such as bonds and loans. Cost of debt is one part of a company's capital structure, with the other being the cost of equity.

B. Cost of equity : This is the return a company needs to decide if an Investment meets capital return requirements.

C. After tax WACC:This is the average after tax cost of a company's various capital sources, including common stocks, preferred stocks, bonds, and any other long term debt. In other words,WACC is the average rate of a company expect to pay to finance its assets.

D. Equity beta:This measures the volatility of the stock to the market that is, how sensitive is the stock price to a change in the overall market. Equity beta is also known as levered beta.

E. Assets beta: This is also known as unlevered beta, this is a beta of a company without the impact of debt. It is also known as the volatility of returns for a company.

F. Pure play comparable :This refers to companies that are in the single line of business. It is also used to find cost of capital for a project that is different from company's mainstream business.

G. Certainty equivalent :This is a guaranteed return that someone would accept now, rather than taking a chance on higher but uncertain, return in the future.

gtnhenbr [62]3 years ago
3 0

Answer: The answers are explained below.

Explanation:

• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.

• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.

• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.

• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.

• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.

• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.

• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.

You might be interested in
Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new fl
MAVERICK [17]

Shane should just call the steeplejack.

  • Flashing serves as an additional layer of water protection; however, if you notice leaks, your flashing is damaged. You may experience water damage if you find rust, holes, or areas where the flashing has worn down. However, it would still be best to replace it.
  • Repointing your chimney brick mortar would be your first step. Repointing is the process of taking out the crumbly mortar, then replacing it with a new batch of mortar.
  • your chimney crown and flue serve as your extra protection against water. However, gaps may eventually appear after some time, allowing water to enter.
  • As a result of the water seeping in, it will damage not only the crown but also the flue. And caulking would be the answer to this chimney problem. Caulking is the process of sealing a gap using a sealant or a waterproof filler

learn more about water leaks here : brainly.com/question/681061

#SPJ4

8 0
2 years ago
Wang Company accumulates the following adjustment data at December 31. For each item, indicate (1) the type of adjustment (prepa
IRISSAK [1]

Answer:

a. Services performed but unbilled totals $600.

  • Accrued revenue
  • Accounts receivable was understated before the adjustment

b. Store supplies of $160 are on hand. The supplies account shows a $1,900 balance.

  • Accrued expense
  • Supplies was overstated before the adjustment

c. Utility expenses of $275 are unpaid.

  • Accrued expense
  • Utilities expense was understated before the adjustment

d. Service performed of $490 collected in advance.

  • Unearned revenue
  • Revenue was overstated before the adjustment

e. Salaries of $620 are unpaid.

  • Accrued expense
  • Wages expense was understated before the adjustment

f. Prepaid insurance totaling $400 has expired.

  • Prepaid expense
  • Insurance expense was understated

4 0
3 years ago
In an effort to promote rapid growth, the government of Cashland has kept taxes low, offered little regulation of business activ
Tanya [424]

Answer:

<em>Explained below.</em>

Explanation:

The government of Cashland government<em> should approach toward achieving economic goals.</em>

At the beginning economic goals should be achieved by the capitalist (capitalist is a person who starts an organisation or a business by investing his or her money).

But if the capitalist goes through  the current pressures, then the capitalist should be advised to adopt a more socialist approach when he or she faces the situation again in the up-coming time.

7 0
3 years ago
Read 2 more answers
Write a short paragraph describing the benefits of working as a team to complete a project.
Kobotan [32]

Answer:

A group of people who have to achieve common goal is known as team. If we work in team it increases our creativity and learning, it also builds trust. It boost the particular person when we work in team. We can also learn faster. There are more chances of getting success in particular area if we work in team. As there is saying, " together we can achieve more what each of us can achieve." It also enhances productivity and capability.

4 0
3 years ago
Read 2 more answers
Suppose that the US Federal Reserve Board was able to confirm that the US economy is in the brink of a recession, operating at a
neonofarm [45]

Answer:

a.) To combat recession the federal reserve board can adopt <u>expansionary monetary policy.</u> The fed can<u> reduce the cash reserve ratio</u>.

b.) The aggregate output and price is going to increase in short run. In the long run though economy will be operating at equilibrium level.

Explanation:

With the decline in the cash reserve ratio the total reserves with the banks will increase. This will boost credit credit creation. As the money supply in the economy increases the aggregate demand will increase. This will further lead to increase in price and output level.

In the medium term, the aggregate supply will also increase though not as much as demand, so there will be excess of demand. The price level will rise further.

In the long run though output will always be at the equilibrium level.

3 0
3 years ago
Other questions:
  • Here I Sit Sofas has 7,100 shares of common stock outstanding at a price of $94 per share. There are 600 bonds that mature in 30
    7·1 answer
  • Companies report prior period adjustments, net of any income tax effects in the:
    9·1 answer
  • Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th
    6·1 answer
  • if are researchers is using data that are low in cost and save time which type of data is this likely to be?
    5·1 answer
  • Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown business district, is –1.8, and th
    8·1 answer
  • What groups generally is charged with creating value through the process of organizing, coordinating, and leveraging employees a
    8·1 answer
  • Which of the following colors is highly variable and can be either cool or slightly warm, depending on how it is used?
    9·1 answer
  • How can you solve circle geometry in a simple way​
    6·2 answers
  • Me on my block be like
    9·2 answers
  • bombeck inc. has the following transactions during august of the current year. aug. 1: opens an office as a financial advisor, i
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!