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
AB Restaurants has debt/equity ratio .25, and its leveraged beta is 1.5. Its tax rate is 30%, and its cost of equity is 15%. The risk-free rate is 5%. CD Restaurants has debt/equity ratio .4, and tax rate 35%. Find the cost of equity for CD.
Sometimes, companies accuse investors of performing credit sales which they make their quotations fall. Is it true?
financial engineering examples,benifits,disadvantages
Atlanta Company stock is predicted to follow an exponential growth rate. The relationship among the current stock price P0, future price PT after time T, and continuously compounded rate of the return r, is: PT = P0eγT. The stock doesn’t pay any
Who explained the high-peak/fat-tails?
Working capital requirement: Is a financial term known as WCR, which is used to judge the operational liquidity of the business and it is a part of operational capital. A firm in spite of having a good profitability and assets may not have a good liqu
Marketing Decisions Assignment: Email the answers to the following questions in an attached word document using the proper file name format as follows: 1
Who explained put–call parity?
Porter’s Primary activities: 1. Inbound Logistics: • Suppliers’ details.• Storage details with respect to materials.• Details regarding pl
UCD Vet Products – a hypothetical publicly traded corporation (UCDV) — is considering investing in a new line of equine DNA analysis technology for race horse breeders. The project will yield the net cash flows listed in the table below. Assume that this p
18,76,764
1930256 Asked
3,689
Active Tutors
1414357
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!