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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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Answer:

Offshoring

Explanation:

offshoring is the  process of  moving an aspect of a business process overseas with the intention of  reducing cost.

A firm can move its manufacturing process from its own parent country to another country (usually where the  labour rate and cost of raw materials is cheap compared to what it obtainable in its home country) in other to  reduce  its cost of production thereby increasing its added value.

From the above explanation, we can conclude that Prextos is planning to employ  Offshoring to cut down losses.

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4 years ago
Ken guest's summer-long trip from new york city to a village in the fujian province of southeast china illustrated the effects o
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Answer – 70 percent

 

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In 2003, Kenneth J. Guest authored the book, “God in Chinatown: Religion and Survival in New York’s Evolving Immigrant Community”

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3 years ago
Which of the following business ownership structures offers the best quality liability protection but higher taxes? (Select the
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Cameron is choosing a car insurance plan. Based on his driving history and traffic where he lives, Cameron estimates that there
irina1246 [14]

Answer:b

Explanation:

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The long term goal of business is to maximize ____, and sales promotions always fit into this long term goal even if there is a
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Hello Chessy R,

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