You are watching: Diversification will normally reduce the riskiness of a portfolio of stocks.
____________ _______________ are designed to safeguard bondholders and also to mitigate potential conflicts in between stockholders and also bondholders
the ______________________ shows exactly how much the firm"s cash, full of currency, bank deposits, and also brief term liquid securities (or cash equivalents) increased or decreased during a year
If the stock price at the finish of last year was 33.50 and the book value per share was 25.00 what was the market/book ratio?
various other points hosted constant, which of the adhering to actions would rise the amount of cash on a firm balance sheet?a. firm repurchases widespread stockb. agency pays dividendc. agency problems new widespread stockd. firm offers customers even more time to pay their bills
which of the following would certainly indicate an advancement in a company"s financial position holding other points constant?a. TIE declinesb. DSO increasesc. quick proportion increasesd. existing proportion declinese. total assets turnover decreases
If a company pays more in dividends than it geneprices in net revenue, its kept revenue as reported on the balance sheet will certainly ____________ from the previous years balance
A company problems 300 mil. of brand-new widespread stock and also usage the proceeds to pay off some ofits exceptional bonds that bring a 7% interest price. Assume that the agency, which does not pay any kind of dividends, takes this action, and also that the full assets, operating income (EBIT), and also its tax rate all remain continuous. Which of the complying with would certainly occur?a. taxable revenue fallsb. company"s interemainder price would certainly not changec. agency would have less prevalent equity than befored. company"s net revenue would certainly increase
One of the benefits to forming a corporation is that the owners of the firm have actually _____________________
A crucial conclusion of the CAPM is that the worth of an ascollection must be measured by considering both the hazard and also the meant rerotate of the asset, assuming that the ascollection is hosted in a well-diversified portfolio. The hazard of the asset organized in isolation is not relevant under the CAPMa. trueb. false
the y axis of the SML represents the required rerevolve of a portfolio through a beta of zero, which is the risk complimentary price.a. trueb. false
according to CAPM investors are involved via portfolio risks, not the risks of individual stocks hosted in isolation. therefore the appropriate danger of a stock is the stock"s contribution to the riskiness of a well diversified portfolio. a. trueb. false
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