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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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Consumer Goods Corporation sells products that are poorly made. Tina, who has never bought a product from Consumer Goods, files

kolbaska11 [484]

Answer: Tina doesn't have a standing

Explanation:

From the information given in the question, we are told that Consumer Goods Corporation sells products that are poorly made.

We are further told that Tina, who has never bought a product from Consumer Goods, files a suit against the firm alleging that its products are defective.

The firm could ask for dismissal of the suit on the basis that Tina doesn't have a standing. This is because Tina has never bought their goods before and therefore shouldn't be alleging that the product of the company is bad. Assuming Tina has bought their products before, then it'll have been harder for the firm to ask for dismissal.

3 0

3 years ago

PLEASE HELP

loris [4]

<span>C) Cash, debit $11,000; Katelyn's Capital, credit $11,000
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6 0

3 years ago

Read 2 more answers

A company incurs advertising costs of $10,000. The company's three selling departments have the following sales: Department 1—$1

erik [133]

Answer:

The amount of advertising allocated to:

Department 1: $1,250

Department 2: $3,750

Department 3: $5,000

Explanation:

Total sales of the company = Sales of Department 1 + Sales of Department 2 + Sales of Department 3 = $10,000 + $30,000 + $40,000 = $80,000

Percent of sales of three selling departments:

Department 1 = ($10,000/$80,000)x100% = 12.5%

Department 2 = ($30,000/$80,000)x100% = 37.5%

Department 3 = ($40,000/$80,000)x100% = 50%

Advertising is allocated based on percent of sales. The amount of advertising allocated to:

Department 1 = 12.5% x $10,000 = $1,250

Department 2 = 37.5% x $10,000 = $3,750

Department 3 = 50% x $10,000 = $5,000

5 0

3 years ago

Type the correct answer in the box. Spell all words correctly. Which type of partnership should Adam and Donna choose? Adam and

Sveta_85 [38]

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3 years ago

Read 2 more answers

Learning is pervasive in our lives, but there are two different theories on how people learn the ________ theories and the _____

Nookie1986 [14]

Learning is pervasive in our lives, but there are two different theories on how people learn the behavioral theories and the cognitive theories.

Option C is correct

Explanation:

The behavioral theory attempts to explain the actions of the person by examining the antecedents and implications of previous experience in the community and the existing relationships he or she had established.

A behavioral example is when teachers recompense their classes or certain students for good behavior at the end of the week with special benefits. Penalties are used to use the same principle. If the student is wrong, the professor may take some privileges away.

Cognitive theory is a theoretical approach that aims to clarify your actions by understanding the patterns of thinking.

For example, a psychiatrist uses cognitive science techniques as she shows you how to recognize and change ill-suited patterns of thought.

4 0

3 years ago