Determining the price of securities

Assignment Help Finance Basics

Reference no: EM131007450

1. What is the primary factor that determines the price of securities? Can you think of another factor that might significantly affect how investors value the first factor? (Think hard: this second factor isn't mentioned in the chapter.)

2. Companies are generally financed with a mix of debt and equity. How does the riskiness of the company as perceived by the financial market change as the mix shifts from all equity to mostly debt? Why? Would changes in per- ceived risk induced by changes in the debt-equity mix affect the company's stock price?

Reference no: EM131007450

Questions Cloud

Ethical issue or an economic issue : 1. What conflict(s) of interest can you imagine arising between members of the community in which a company operates and some other stakeholders? (Hint: Think about pollution.) 2. Is the agency problem an ethical issue or an economic issue?

Decisions of executives within the firm : 1. Discuss the differences, similarities, and ties between finance and accounting. 2. Discuss the relationship between finance and economics. 3. How does the activity of investors in financial markets affect the decisions of executives within the fir..

What is the highest value of p that will give infinite life : A steel alloy (Su = 150 ksi, Sy = 100 ksi, Sn = 70 ksi) is used to make a five-leaf (each leaf is 0.1 in. * 1.8 in.) semielliptic leaf spring. Kf (which is due to stress con- centration at the clips and the center hole) is 1.2. Use the simplified ..

How should handle pharmaceutical or personal care product : How should we, as a country, handle pharmaceutical or personal care product pollutants? Should they be handled through new treatments or through prevention? Explain your answer. Review your local community, town, city, or state government's websit..

Determining the price of securities : 1. What is the primary factor that determines the price of securities? Can you think of another factor that might significantly affect how investors value the first factor? (Think hard: this second factor isn't mentioned in the chapter.)

Financial impact of an exchange rate : Assume Symantics builds the plant when the exchange rate is 45 rupees to the dollar. Describe the financial impact of an exchange rate movement to 40 rupees to the dollar on Symantics. Describe the impact of a movement to 50 rupees to the dollar.

Determine a satisfactory combination of d, d and n : Available space limits the outside diameter of the spring to 10 mm. Estimate the dimensions needed by scaling the drawing. Determine a satisfactory combination of D, d, N, wire material, and free length of coiled section.

Canadian dollar and the british pound : Use the exchange rates between the U.S. dollar and the British pound and between the U.S. dollar and the Canadian dollar to calculate the cross rate between the Canadian dollar and the British pound. Look up that rate to see if your calculation wa..

Exchange rate between these two currencies : What has the general trend been for the exchange rate between these two currencies? If you had invested $1,000 in Chilean pesos at the average rate at the begin- ning of the period and held that currency until now (your most recent rate), how much ..

User Account

All Pages