The corporation is multidivisional conglomerate

Reference no: EM13274481

The corporation is a multidivisional conglomerate. The food division is undergoing a capital budget analysis and must estimate the divisions beta. This division has a different level of systematic risk than is typical for Corporation as a whole. The most appropriate method for estimating this beta is:

a. the regression coefficient from a time series regression of food divisions return on assets on a market index

b. the regression coefficient from a time series regression of corporation stock returns on a market index

c. To multiply the companys beta by the ratio of the food divisions total assets/corporation total assets

d. the regression coefficient from a time series regression of food divisions net income on the corporations return of assets

Reference no: EM13274481

Questions Cloud

Campus diversity : During the last couple of decades, colleges and universities have tried to increase their number of minority students by various forms of affirmative action. At Campus X, this has led to no small amount of dissension. Some students complain that the ..

Average cost of a child delivered at a local hospital : What sample size is necessary for a study to determine the average cost of a child delivered at a local hospital within the past three months?

Considering a new inventory system : DIY Construction Co is considering a new inventory system that will cost $750000. The system is expected to generate positive cash flows over the next four years in the amounts of $350000 in year one, $325000 in year two, $150000 in year three, and $..

Using the profit-and-loss statement : Using the profit-and-loss statement you developed in question 2.2b, and assuming thatWestgate’s beginning inventory was $11 million, ending inventory was $7 million, and total investment was $20 million including inventory, determine the following

The corporation is multidivisional conglomerate : The corporation is a multidivisional conglomerate. The food division is undergoing a capital budget analysis and must estimate the divisions beta. This division has a different level of systematic risk than is typical for Corporation as a whole. The ..

Opinion of the zimbardo experiment : Discuss your opinion of the Zimbardo experiment. Why do you believe that the men who took the role as prison guards became overtly authoritarian? Why do you believe the men who took the role of prisoners became emotionally imbalanced?

Legal issues in hydraulic fracturing : To determine what you believe is the most important environmental issue. To be able to distinguish state and federal laws and regulations; to become familiar with proposed federal laws; to be able to compare and contrast state law approaches; to exam..

Business strategy and an entity organizational culture : What is the relationship between the business strategy and an entity organizational culture regarding staffing decision? Is it possible to strengthen one without the other?

What is the primary incompatibility : What is the primary “incompatibility” between b and g? Explain briefly the difference between RTS/CTS and CTS-to-self and when each is used. how do 11g nodes know that an 11b node is associating and how is CCK involved?

User Account

All Pages