You are watching: Diversification will normally reduce the riskiness of a portfolio of stocks.
____________ _______________ space designed to safeguard bondholders and also to alleviate potential conflicts between stockholders and also bondholders
the ______________________ shows how much the firm"s cash, complete of currency, bank deposits, and also short term liquid securities (or cash equivalents) raised or reduced during a year
If the stock price at the end of last year to be 33.50 and also the publication value per share to be 25.00 what to be the market/book ratio?
other things hosted constant, which of the adhering to actions would rise the amount of cash top top a agency balance sheet?a. Agency repurchases common stockb. Company pays dividendc. Company issues brand-new common stockd. Company gives customers more time to pay your bills
which the the complying with would show an advancement in a company"s financial place holding various other things constant?a. TIE declinesb. DSO increasesc. Quick ratio increasesd. Current ratio declinese. Complete assets sales decreases
If a company pays an ext in dividends than it generates in network income, that retained income as report on the balance sheet will ____________ indigenous the previous year balance
A company issues 300 mil. Of new common stock and also use the proceeds to salary off some ofits outstanding bonds that carry a 7% interest rate. Assume the the company, i beg your pardon does no pay any dividends, takes this action, and also that the total assets, operating earnings (EBIT), and also its tax price all continue to be constant. Which of the adhering to would occur?a. Taxable revenue fallsb. Company"s interest price would not changec. Company would have less usual equity 보다 befored. Company"s net earnings would increase
One of the advantages to forming a corporation is the the owners of the firm have _____________________
A crucial conclusion of the CAPM is the the worth of an asset have to be measure by considering both the risk and the intended return the the asset, assuming that the asset is hosted in a well-diversified portfolio. The threat of the asset held in isolation is not appropriate under the CAPMa. Trueb. False
the y axis the the SML represents the compelled return of a portfolio with a beta the zero, which is the risk totally free rate.a. Trueb. False
according come CAPM investor are involved with portfolio risks, no the risks of separation, personal, instance stocks hosted in isolation. Therefore the pertinent risk of a stock is the stock"s contribution to the riskiness that a well diversified portfolio. A. Trueb. False
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