All categories

3 years ago

What are the two risk components that determine a firm's cost of equity?

1 answer:

5 0

Traditionally, the formulas used to express a firm's cost of equity are the dividend capitalization model and the capital asset pricing model (CAPM).

Explanation:

Generally, two risk components determine a firm's cost of equity. The first is the systematic risk associated with the broader equity market. All firms are exposed to this risk, and it cannot be mitigated through diversification.

The second risk component is the unsystematic risk associated with the firm in question. This risk, often reflected as beta, a measure of the stock's volatility in relation to the volatility of the broader market, can be mitigated via diversification.

You might be interested in

The following information is for Chambersburg Corp. for 2018 and 2017. Chambersburg uses the straight-line depreciation method.

photoshop1234 [79]

Gghjuuujh handkerchiefs 2.5

6 0

2 years ago

The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,690 5/31 Transf

liubo4ka [24]

Answer:

How many units are in process at May 31?

physical units ending WIP: 740

equivalent units WIP materials: 740

equivalent units WIP conversion: 296

Explanation:

We will add the beginning and started units, then subtract the trasnaferrd out to get the ending WIP inventory.

physical units:

beginning 490

started 1,650

transferred-out<u> (1,400) </u>

ending 740

Now we will multiply by the percentage of completion to get the equivlent units of WIP on each category:

<u>equivalent units for ending WIP:</u>

materials 740 x 100% = 740

conversion 740 x 40% = 296

4 0

3 years ago

If you need to confiscate a PC from a suspected attacker who does not work for your organization, what legal avenue is most appr

kirill115 [55]

Answer:

The correct answer is

b) Consent agreement signed by employees.

good luck ❤

8 0

3 years ago

The atmospheric pressure at a place is 650 mm of Hg. Convert this pressure

EleoNora [17]

Ans Solution

Explanation:

4 0

2 years ago

From a neoclassical perspective, which of the following would most likely be viewed as an element that underpins long-run produc

Sliva [168]

Answer: Investment in human capital

Explanation:

The investment in human capital is one of the important element in the economical concept as it helps in developing the growth and productivity of an economy and also expanding the various types of skills, ideas and knowledge.

The human capital is one of the type of intangible asset in an organization that helps in analyzing the economic value on the basis of the employees skills and ability.

According to the given question, the investment in human capital is one of the long run growth in the economy. Therefore, Human investment capital is the correct answer.

3 0

3 years ago