Answer:
The company's capital structure weights on a book value basis are:
a. 28.57% for equity, and
b. 71.43% for debt.
Explanation:
Answer:
The part of a stock's return that is systematic is a function ofthe following variables:
I. Volatility in excess returns of the stock market
II. The sensitivity of the stock's returns to changes in the stock market
Explanation:
The Volatility in excess returns of the stock market and the The sensitivity of the stock's returns to changes in the stock market represent the part of the stocks return that is systematic
The correct answer among all the other choices is B. $210. This is the total amount of interest earned at the end of 3 years. Thank you for posting your question. I hope this answer helped you. Let me know if you need more help.
Answer:
C) Net present value and internal rate of return
Explanation:
Of the methods discussed, cash payback and average rate pf return does not take into account the time value of money. Cash payback and ARR basically only use the cash flows and profits in relevance to the investment.
Net present value as the name suggests, discounts these cash flows and then subtracts the initial outlay costs and Internal rate of return also discounts the project cash flows so that they equal zero. Thus these two are the options that take into account the time value. IRR often is calculated by discounting cash flows at different rates until the NPV = 0.
Hope that helps.
