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
Define the term Vanilla Bonds regarding Corporate Bonds?
Crawford Corporation is planning to lease a machine for the next 4 years for an annual lease payment of $3,000 paid in advance, plus a non-refundable initial fee of $3,000. There is a 1-year delay for the tax benefits of leasing. Crawford may buy the machine, deprecia
Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?
If the model could not even find bond prices right, how could this hope to accurately value bond options?
Why can we not compute the required return (Ke) by the Gordon-Shapiro model [P0 = Div0 (1+g) / (Ke – g)] in place of using the CAPM? As we identify the current dividend (Div0) and the current share price (P0), we can acquire the growth rate of the dividend by th
Describe the term Zero Coupon Bonds in Corporate Bonds?
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.
Which parameter good measures value creation; the Economic Value Added (EVA), the CVA (Cash Value Added) or the economic profit?
Your Corp, Inc.'s data is as follows:Beta; 1.30Recent dividend; $.90Expected dividend growth; 7%Expected return of the market; 14%Treasury Bills are yielding; 4%Most recent stock price; $65 A] Us
The dividend is the part of the net income which the company distributes to shareholders. When the dividend shows real money, the net income is also real money. Is it true?
18,76,764
1937243 Asked
3,689
Active Tutors
1426184
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!