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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

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The authors of the textbook advocate using the dialectic approach to understand intercultural relationships. The dialectic appro
babymother [125]

Answer:

The statement is: False.

Explanation:

The dialectic approach is a method of communication that takes place when two individuals have a different point of view over a certain matter but wish to come to an understanding of the other's position by reasoned arguments. The dialectic approach combines the social, interpretive, and critical approaches.

5 0
3 years ago
If the number of buyers of a good increases, the demand for the good will _____ and the demand for labor used to produce that go
Fiesta28 [93]

If the number of buyers of a good increases, the demand for the good will <u>increase</u> and the demand for labor used to produce that good will <u>normal</u>.

The logic behind the demand and supply model is straightforward. The volume of a specific commodity or service that consumers will be able and willing to buy over time at each price is shown by the demand curve.

The supply curve depicts the volume of goods that merchants will offer for sale over that period at various prices.

We should be able to determine a price where the quantity of items buyers are willing and able to buy equals the quantity of goods sellers are willing to offer for sale by combining the two curves.

To learn more about Demand And Supply Model here

brainly.com/question/12984251

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4 0
2 years ago
A market shortage occurs when:a. the quantity demanded is less than the quantity supplied at a given price. b. the market price
Andreyy89

Answer:

b. the market price is below equilibrium

Explanation:

Markets are at Equilibrium, where market demand = market supply. Market Demand is downward sloping due to price - demand inverse relationship as per law of demand. And, Market Supply is upward sloping due to price - supply direct relationship as per law of supply

When Price is below Equilibrium price : Market demand is more, as it is inversely related with price. And, Market supply is less, as it is directly related with price. So Market Supply is more than Market Supply. This implies Scarcity (Market Shortage), when supply is insufficient to fulfil demand.

This excess demand (or shortage/ scarcity) creates competition among buyers & pushes up the market price.This way; finally, the market price & market quantity resume back to equilibrium level.

6 0
3 years ago
Which sentence in the given text describes an element of the marketing mix that could help
vredina [299]

Answer:

C

though all had the 4p elements only c had a chance to build the business

8 0
3 years ago
g "6. Financially, why would a company: (a) increase its dividend; (b) buy back some of its common stock shares; (c) pay down so
VikaD [51]

Answer:

(a) increase its dividend;

dividends are increased for two reasons:

  1. the company has excess cash and it doesn't have any possible investments on hand
  2. the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.

(b) buy back some of its common stock shares;

  • the company has excess cash and the board and upper management believe that the stock price is too low.

(c) pay down some of its debt;

  • the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.

(d) increase its use of internal financing;

  • the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.

(e) take the public firm private

  • the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.

5 0
3 years ago
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