Answer: 0.25
Explanation:
The The debt-to-equity ratio is calculated when the total liabilities of w company is divided a by the shareholder equity while the book-to-market ratio is used to know a company's value by comparing the book value of the company to its market value.
Since the firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. The ratio of the book value of debt to the market value of equity will be:
= 0.5/2
= 0.25
Answer:
19.50%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock R
= 3% + 2.5 × (13% - 3%)
= 3% + 2.5 × 10%
= 3% + 25%
= 28.00%
For Stock S
= 3% + 0.55 × (13% - 3%)
= 3% + 0.55 × 10%
= 3% + 5.5%
= 8.50%
The difference would be
= 28% - 8.5%
= 19.50%
Financing obtained from investors who believe the borrower will experience rapid growth and who receive equity (part ownership) in return is called Venture capital.
<h3>What is venture capital example?</h3>
- Venture Capital (VC) is the term used to describe investment given by investors to small or newly established companies that have a promising future.
- A venture capital fund is a type of private equity that is funded by institutional and private investors, including investment banks, insurance providers, and pension funds.
<h3>What is a venture capital in business?</h3>
- A type of funding for creative, early-stage enterprises with significant growth potential is venture capital (VC).
- For entrepreneurs and start-up businesses, venture capital provides financing and operational experience, generally, but not always, in technology-based industries like ICT, health sciences, or fintech.
<h3>What is venture capital and its types?</h3>
- The use of venture capital funds at various phases of a firm determines how they are categorized.
- Early stage financing, expansion financing, and acquisition/buyout financing are the three basic forms.
- Early stage financing is divided into three subgroups.
Learn more about venture capital here:
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It is a because if you think about it, you would budget for your future.
Answer:
Reserves is your answer...
Explanation:
Hope this helps you!!!
