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2 years ago

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

Business

1 answer:

liberstina [14]2 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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Which of these would Congress look to do during a recession, as it pertains to fiscal policy?

jeyben [28]

Answer:

Raise taxes

Explanation:

This will help reduce the amount of money in circulation because during recession money loses its value due to large amount of money in circulation

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2 years ago

What is one way you can get singled out as a leader by using body language?

Mashutka [201]

Answer:

Explanation:

In a group meeting or any setting that requires a leader, many body language signs can accidentally cause someone to be singled out or chosen as a leader. Such signs as smiling, making eye contact, good posture, assertive attitude, hand gestures, etc are all body language signs that give off confidence to those around you, and confidence is the main trait of a leader.

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3 years ago

Deltona Motors just issued 230,000 zero-coupon bonds. These bonds mature in 18 years, have a par value of $1,000, and have a yie

Sergeeva-Olga [200]

Answer:

$81,959,737

Explanation:

Zero coupon bond is the bond which does not offer any interest payment. It is issued on deep discount price and Traded in the market on discounted price.

As per given data:

Numbers of Bonds = 230,000

Numbers of years to mature = n = 18 years

Face value = F = 230,000 x $1,000 = $230,000,000

YTM = 5.9%

Value of zero coupon bond = Face value / ( 1 + YTM )^n

Value of zero coupon bond = $230,000,000 / ( 1 + 5.9% )^18

Value of zero coupon bond = $81,959,737

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3 years ago

Graphic Designs has 68,000 shares of cumulative preferred stock outstanding. Preferred shareholders are supposed to be paid $1.6

Anna35 [415]

Answer:

Graphic Designs

The firm will have to pay $6.40 per share next quarter.

Explanation:

a) Data and Calculations:

Number of cumulative preferred stock outstanding = 68,000

Preferred dividends per share = $1.60 per quarter

For four quarters, the preferred dividends per share = $6.40 ($1.60 * 4)

b) This will take care of the past three quarters that have accumulated and the fourth quarter. Note that when a company wishes to pay a common stock dividend, it must pay the cumulative preferred dividends first, no matter the length of period that the dividends have accumulated.

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3 years ago

Which of the following is not an outcome of providing more responsive customer care?

ryzh [129]

Answer:

reduced competiton

Explanation:

5 0

3 years ago