1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
omeli [17]
3 years ago
9

Assume that we are in the MM world. The beta of an all-equity firm is 1.4. Suppose the firm changes its capital structure to 40

percent debt and 60 percent equity. What is the equity beta of the levered firm
Business
1 answer:
balu736 [363]3 years ago
8 0

Answer:

2.3

Explanation:

Levered Beta = Unlevered Beta x (1+D/E)

D/E = Debt-to-Equity Ratio

1.4 x (1 + 04 / 0.6) = 1.4 x 1.667 = 2.3

You might be interested in
A cup of Starbucks coffee is just as good as a cup of Dunkin Donuts coffee for me (assuming equal sized cups.) The price of coff
Oxana [17]

Answer:

TRUE

Explanation:

It is given that both Starbucks coffee as well as Dunkin Donuts coffee are both perfect for me. They taste same and the quality of the coffee in both are same. The price of Starbucks coffee is more than the coffee in Dunkin Donuts. As a customer I would prefer the lower cost item i.e. the Dunkin Donuts coffee.

After the pandemic, the price of the Starbucks coffee have increased. But my utility of purchasing coffee from Dunkin Donuts is not changed as the price of the Dunkin Donuts coffee is still the lowest between the two. So I will continue buying coffee from Dunkin Donuts like before. Thus my utility remains unchanged.

4 0
2 years ago
Outstanding Job Hours to Print Job Penalty for not completing job in 24 hoursJob A 6 -$120Job B 9 -$200Job C 12 -$360Job D 16 -$
pav-90 [236]

Answer:

Option D is correct

Explanation:

The cumulative loss in penalty of this option is the highest compared to the rest which makes it logical.

7 0
3 years ago
Which of the following would be considered an abiotic factor in an ecosystem? ant, moss,stone, tree
tankabanditka [31]
Stone or tree 
should be right
7 0
3 years ago
Read 2 more answers
Eleonore and Henry form a partnership to operate a horseback-riding business. The two partners file a duly executed statement of
malfutka [58]

Answer:

Yes, because Henry had authority to sell the horse

Explanation:

In the given scenario Henry had apparent authority to sell the horse.

Apparent authority is the ability of an agent to act on behalf of a principal even though this is not clearly stated out. It is as a result of a third party assuming the agent has such power.

James rightly assumed Henry had the power to sell the horse.

So the sale of the horse is binding on Eleonore.

4 0
3 years ago
Pick the correct statement related to net working capital from below. Multiple Choice Net working capital can be ignored in proj
zvonat [6]

Answer:

Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.

Explanation:

Net working capital is the difference between current assets and current liabilities. Net working capital measures a company's liquidity.

In project analysis, net working capital is part of the cost. It is usually subtracted from cash inflows.

Net working capital is a cash outflow.

Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.

4 0
2 years ago
Other questions:
  • If I pick the wrong career, I'll be stuck forever. Myth or not?
    11·2 answers
  • Which of the following is one effect of a purchase of $600 of supplies on credit? Select one:
    11·1 answer
  • What kinds of decisions should members of congress be willing to anger their party leadership over? on what kinds of issues or d
    9·1 answer
  • If the capitalization rate on a building that produces a $20,000 annual income is 10 percent, what is the estimated value of the
    13·1 answer
  • 7. Which of the following characteristics should exist to
    5·1 answer
  • What is the minimum number of integers that you must pick between 0 and 9 (inclusive), such that two of them add up to 9?
    11·1 answer
  • Enith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts P
    7·1 answer
  • If the company sold​ 7,900 units of bracelets during the​ year, how much is the cost for one​ bracelet? (Round your answer
    15·1 answer
  • Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for 50 per unit. Varia
    9·1 answer
  • randy and debbie are in charge of training new marketing department employees at company abc. in a training session, debbie comm
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!