User Account

All Pages

Relationship between the growth rate and risk

Assignment Help Macroeconomics
Reference no: EM131298652

Companies ABC and XYZ are similar in asset size ($3 billion), asset volatility (30%),ROE (20%) and dividend-payout ratio (30%), but differ in the following way:

ABC

XYZ

Profit Margin

10%

12%

Asset Turnover

160%

120%

(a) Which company riskier? Brie?y explain why.

(b) What is the growth rate of each company?

(c) What does your answer in part above say about this relationship between the growth rate and risk?

Reference no: EM131298652

Questions Cloud

Would the waxman-markey law achieve production efficiency : Electricity producers would spend $208 million a year to comply with the new rules. (Think of these dollar amounts as dollars' worth of other goods and services.)
Prepare the cost-volume-profit income statement : You are a new graduate from Morgan State University, and you just got the job of a lifetime at the New York office of Baby Boom, Inc., Prepare the Cost-Volume-Profit income statement for 2012 based on Ms. Trainor's estimates. Compute the break-even ..
Social security and medicare : What do economists mean when they say Social Security and Medicare are "pay-as-you-go" plans? What are the Social Security and Medicare trust funds, and how long will they have money left in them? What is the key long-run problem of both Social Se..
What is opportunity cost of producing an additional pizza : Can Foodland produce 30 pizzas and 30 loaves of bread a day? If it can, is this output efficient, do the people of Foodland face a tradeoff, and what is the opportunity cost of producing an additional pizza?
Relationship between the growth rate and risk : (a) Which company riskier? Brie?y explain why. (b) What is the growth rate of each company? (c) What does your answer in part above say about this relationship between the growth rate and risk?
Differences between popular and scholarly sources : Explain at least five differences between popular and scholarly sources used in research.- In your summary of each article, comment on the following: biases, reliability, strengths, and limitations.
Discuss the pros and cons of each method of valuation : Compare and contrast the factors that contributed to the EPS and present your views as to which company would be the better investment. Support your response with examples.
Explain how the farm’s production possibilities will change : If the farm adopted a new technology, which allows it to use fewer resources to fatten chickens, explain how the farm's production possibilities will change. Explain how the opportunity cost of producing a bushel of soybean will be affected.
What are there technological factors and trends : Your environmental scan must include all of the following elements: What are there Technological factors and trends? What are there Geographic factors and trends?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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