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
Kamila [148]
3 years ago
14

A company's beta (from the CAPM) is affected by its capital structure. a. True b. False

Business
1 answer:
liberstina [14]3 years ago
3 0

Answer:

True

Explanation:

We know that

Risk-free rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

where,

The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.  

Plus we know that the capital structure is composed of debt and equity. If the debt is increasing, the market risk is also increased, and therefore the volatility is also increasing.  

The beta is the volatility which can affect due to market movements so it automatically affect the capital structure

You might be interested in
Rather than looking for problems, ________ seeks to identify the unique qualities and special strengths of an organization, whic
Marianna [84]

Answer:

The correct answer is A

Explanation:

AI stands for Appreciative Inquiry, which is approach of change management, that focuses on identifying what is working and analyzing why it is working. The basic or primary tenet of AI, is that the firm will grow in which ever direction, the people in the firm focus their attention.

Most approaches of organizational development are the problem centered. They recognize set of problems, then look for the solution. So, instead of lokking for problems, AI seeks to recognize the special strengths as well as unique qualities, in order to built upon the improve performance.

8 0
3 years ago
Which of the following are criteria for determining whether to record an asset as a fixed asset?
valentinak56 [21]

Answer:

must be long lived and used by the company in its normal operations

Explanation:

An assets is something that will help the company to generate value.

8 0
3 years ago
Which spreadsheet type will determine how well a business has done over the past year?
masha68 [24]
<span>profit-and-loss statement</span>
6 0
3 years ago
Hill Co. can further process Product O to produce Product P. Product O is currently selling for $60 per pound and costs $42 per
NARA [144]

Answer:

(A) True

Explanation:

Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce

So the statement “The differential cost of producing Product P is $13 per pound” is true

6 0
3 years ago
Manufacturing overhead was estimated to be $562,800 for the year along with 20,100 direct labor hours. Actual manufacturing over
Lemur [1.5K]

Answer:

$604,800

Explanation:

Applied manufacturing overhead is the manufacturing overhead that has been applied to production in a period.

it is calculated with the formula "budgeted overhead rate * actual labor hr"

Budgeted manufacturing overhead = $562,800

Budgeted Direct labor hours = 20,100

Budgeted Overhead rate = 562800/20100 =$28/hr

Actual manufacturing overhead = $543,705

Actual direct labor hours = 21600

Amount of manufacturing overhead applied = predetermined overhead rate * actual hr =28*21600

=$604,800

7 0
4 years ago
Other questions:
  • AlphaBrona Industries manufactures 50,000 components per year. The manufacturing cost of the components was determined as follow
    8·1 answer
  • According to surveys, the largest expense of a typical American consumer is
    12·1 answer
  • Domanico Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $2,0
    8·2 answers
  • Which of the following is true of profit maximization?
    10·1 answer
  • You would like to buy shares of International Business Machines (BM). The current bid and ask quotes are $103.25 and $103.30, re
    7·1 answer
  • If the quantity demanded for a good rises as the price falls, then the curve representing this relationship will be:
    5·1 answer
  • The 1998 annual report for Sears shows that, since 1978, it has experienced dramatic changes in the composition of its workforce
    12·1 answer
  • Dave gets a job at a grocery store, which pays him an hourly wage in
    5·2 answers
  • Assume Fred faces a potential liability exposure. The standard deviation of the probability distribution for the loss equals $12
    9·1 answer
  • Volume-based rates are appropriate in situations where the incurrence of factory overhead?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!