Firms beta increased

Assignment Help Financial Management
Reference no: EM13874869

If a firm's beta increased, everything else being the same, its required rate of return would

decrease.

fluctuate less than before.

fluctuate more than before.

possibly increase, possibly decrease, or possibly remain constant.

increase.

Reference no: EM13874869

Questions Cloud

Calculating the weighted average cost of capital : Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?
Aftertax salvage value for use in capital budgeting analysis : Kasper Film Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $22,500, of which 80% has been depreciated. The firm can sell the used equipment today for $7,500, a..
Who is responsible for addressing the issue : Federalism results from the interaction between the different layers of government. Many issues are discussed not in terms of right and wrong, but who is responsible for addressing the issue.
Rate of energy destruction in the pipe : Liquid water enters an adiabatic piping system at 15°C at a rate of 5 kg/s. It is observed that the water temperature rises by 0.5°C in the pipe due to friction. If the environment temperature is also 15°C, the rate of energy destruction in the pi..
Firms beta increased : If a firm's beta increased, everything else being the same, its required rate of return would
What does the repeated prisoners dilemma suggest : What does the repeated Prisoners' Dilemma suggest about the role of trust and the choice between (i) social institutions that encourage long-term relationships between agents.
Basis in the equipment received in the exchange : Fred and Sarajane exchanged equipment in a qualifying-like-kind exchange, Fred gives up equipment with an adjusted basis of $14,000 (fair market value of $15,000)in exchange for Sarajane's equipment with a fair market value of $12,000 plus $3,000 cas..
The real risk-free rate and inflation is expected : The real risk-free rate is 4%. Inflation is expected to be 2% this year and 4% the next two year. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? What is the yield on 3-year Treasury securities?
Second-law efficiency of the mixing chamber : The mixture leaves the mixing chamber as a liquid at 45°C. If the surroundings are at 15°C, determine (a) the temperature of saturated steam entering the chamber, (b) the energy destruction during this mixing process, and (c) the second-law effici..

Reviews

Write a Review

Financial Management Questions & Answers

  After-tax cash flow for firm using income statement

To calculate the after-tax cash flow for a firm using an Income Statement, you would ______.

  New machine which will reduce manufacturing costs

Mars, Inc. is considering the purchase of a new machine which will reduce manufacturing costs by $5,000 annually. The company will depreciate the cost of the new machine using the straight line method over the project life and it expects to sell the ..

  Best estimate of the companys cost of equity

Stock in Dragula Industries has a beta of 1.4. The market risk premium is 7 percent, and T-bills are currently yielding 4.40 percent. The company’s most recent dividend was $1.60 per share, and dividends are expected to grow at a 6.0 percent annual r..

  Development life-cycle of organizations

Stage 5 of "The Development Life-Cycle of Organizations" is known as

  What is the value today-dollar per year

What is the value today of $4,600 per year, at a discount rate of 10 percent, if the first payment is received 6 years from today and the last payment is received 20 years from today?

  Developing a balanced scorecardneed for organisations to

developing a balanced scorecardneed for organisations to measure and manage performance against objectives as well as

  What is the retailers effective cost of trade credit

A large retailer obtains merchandise under the credit terms of 1/20, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..

  Why are motivational theories not universal

Would a multinational be able to hire values, or buy values, when staffing its subsidiary operations in your country? Why are motivational theories not universal?

  About spending your entire life working

You are not thrilled about spending your entire life working. So, you have decided that you will save $9 thousand a year, starting at the end of this year, and retire as soon as you can accumulate $1 million. If you can earn an average of 7.23 percen..

  Present value if the payments are an annuity due

Suppose you are going to receive $13,500 per year for five years. The appropriate inerest rate is 8.4 percent. What is the present value of the payments if they are in the form of an ordinary annuity and what is the present value if the payments are ..

  Level of currency held by the public

If the required reserve is 0.2, the level of deposits is $1,000, the level of currency held by the public is $100, the level of excess reserves is $100, the level of MMF is $1,000 and the level of time deposits is $2,000, then M2 is: Ceteris paribus,..

  Which two of the six methods used to evaluate projects

Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager? Explain why you decided on these two and not the other four. List the perceived deficiencies of the fo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd