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3 years ago

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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One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in th

scoray [572]

A. The size of the factory is fixed.

We know there will always be costs of rent and etc when running a business so even in the short run there is fixed costs. The output is always variable depending on the number of workers. The number of workers is also not fixed, but the size of the factory is because you cant just get up and move your business over night, it costs money and is a lot of work.

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3 years ago

Yeloe Corporation sells 400 shares of common stock being held as an investment. The shares were acquired six months ago at a cos

guajiro [1.7K]

Answer:

Explanation:

Cash (400*40) Dr.$16,000

Loss on sale of stock investments (400*40-400*600 Dr.$8,000

Stock Investments (400*60) Cr.$24,000

As the stock was sold $20 below its purchase price therefore $20*400 will be recorded as loss on investments.The loss on investments and Cash will be debited and investments have decreased therefore credited.

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3 years ago

1. assets for lincoln company totaled $13,000, liabilities totaled $1,000, and stockholders' equity totaled $12,000. what is the

Fittoniya [83]

The ratio of liabilities to stockholders' equity is 0.083.

<h3>What is the ratio of liabilities to stockholders' equity?</h3>

Liabilities are future benefits that would have to be sacrificed in the future by an entity to other entities as a result of past transactions. An example of liability is account payable.

Stockholder's equity is the difference between assets and liabilities. Assets are resources that can be used to increase the value of the firm. An example of an asset is account receivable.

The ratio of liabilities to stockholders' equity can be determined by dividing liabilities by stockholders equity.

The ratio of liabilities to stockholders' equity = liabilities / stockholders' equity

1000 / 12,000 = 0.083

To learn more about liabilities, please check: brainly.com/question/26513242

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1 year ago

Which statement best describes the two billing cycle method that some credit card companies use

Alborosie

Answer:

Double-cycle billing is a method used by creditors, usually credit card companies, to calculate the amount of interest charged for a given billing period. It takes into account not only the average daily balance of the current billing cycle (usually one month), but also the average daily balance of the previous cycle.

Explanation:

idk...my mom helped me answer this for you

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3 years ago

in your own opinion, how importance having a security tools, privacy, social networking, employment contacts in hotel and why?

Nadya [2.5K]

Answer:

It's important

Explanation:

Because maybe when you stay in hotel and then you have your things then you actually die in accident in the hotel then if someone or forensics or policemen/policewoman want your details she/he will check your room gotel

6 0

3 years ago