Explain consensus among the chief authors in finance
Is there any consensus among the chief authors in finance concerning the market risk premium?
Expert
In Fernández (2006) we come at this conclusion after analyzing over 100 books and financial articles. The given chart and table demonstrate this point:
Figure: Risk premium recommended in several books and papers
Here,
REP = required equity premium;
HEP = historical equity premium;
IEP = implied equity premium;
EEP = Expected equity premium
ABC Inc. is planning to lease a computer for $3000 per annum, payable in advance, for a period of 4 years. The lease will cover maintenance costs. ABC CFO feels that if he buys the same computer he should be able to sell it at 15% of the purchase price after 4 years.
Long-Term Financing Needed : - At year-end 2012, total assets for Ambrose Inc. were $1.2 million and accounts payable were $375,000. Sales, which in 2012 were $2.5 million, are expected to increase by 25% in 2013. Total ass
Is this possible to use different WACCs within order to discount each year’s flows? In which cases?
You have been given the following information on two corporations; you are to assume that thesecurities are correctly priced. My Corp, Inc. has a Beta of 1.25 and an Expected Return of .145;Your Corp, Inc. has a Beta of .75 and an Expected Return of .095. Based on the
Which determines the shape of the term structure of Interest rates?
How could we acquire an indisputable discount rate?
Explain the term Indenture and also describe their provisions?
Flow variables: Any variable, whose magnitude is evaluated over a time period, is termed as glow variable.
The reasonable thing to perform is to finance current assets that are collections and inventories etc. with short-term debt and fixed assets along with long-term debt. Is it correct?
What are the types of lease contracts which are seen in practice?
18,76,764
1926993 Asked
3,689
Active Tutors
1412171
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!