Portfolio risk and raise return to risk ratio

Assignment Help Finance Basics
Reference no: EM132097249

Why the addition of a risk-free asset will lower the overall portfolio risk and raise return to risk ratio?

Some companies like Facebook, Google, and Apple do not use any long-term debt or 0% LT debt. Does it make financial sense for such companies to use no debt in their capital structure in line with he signalling theory?

Why do stock analysts reach different conclusion on stock valuation and price targets?

Reference no: EM132097249

Questions Cloud

Long-term debt outstanding at the start of the year : What is the formula to calculate the required external financing over the next year?
At what price would these bonds sell in the marketplace : At what price would these bonds sell in the marketplace? How many bonds would the firm have to issue to raise $1 million?
What are the weight of equity-weight of debt : What are the weight of equity, weight of debt, cost of equity, after tax cost of debt, WACC.
Income statement relate to the health of the company : How does the balance sheet, income statement relate to the health of the company? What does a trend analysis of statements of cash flows tell?
Portfolio risk and raise return to risk ratio : Why the addition of a risk-free asset will lower the overall portfolio risk and raise return to risk ratio?
Happen to the required return on the company stock : (a) what would happen to the firm's WACC? What would happen to the required return on the company's stock?
Centralized organization structure-decentralized one : What are the advantages of a centralized organization structure vs. a decentralized one? What are the disadvantages?
What is the current price of mummeball common stock : If the required rate of return on this stock (ks) is 12%, what is the current price of Mummeball's common stock?
What would be the reasonable after tax cost of debt : If Company X consider to issue new debt, What would be the reasonable after tax cost of debt? (Federal Tax : 40%)

Reviews

Write a Review

Finance Basics Questions & Answers

  Alternative the null hypothesis that the population mean

Test at the 5% significance level against a two-sided alternative the null hypothesis that the population mean is $125.32.

  What is the annual ordering cost of the postcard inventory

Post Card Depot, a large retailer of postcards, orders 3806306 postcards per year from its manufacturer. Post Card Depot plans on ordering postcards 16 times.

  What is the aftertax cost of debt

Bargeron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt.

  A guaranteed replacement cost policy

a. Describe the extended replacement cost endorsement that can be added to a Homeowners 3 policy.b. What is a guaranteed replacement cost policy?

  Create in the process

Why did we come up with FDIC and what new problem did we create in the process? Explain.

  Which project meets elysian''s standards

calculate each project's payback period. Which project meets Elysian's standards?

  How the cost of the project is related to its duration

They calculated a normal completion time of 53 days and a cost of £29,300 - or a crashed completion time of 40 days and a cost of £33,350. See how they got these results, and find how the cost of the project is related to its duration.

  What is the maximum inventory level

The Brown Sugar Corporation sells baking supplies to Foodies over the Internet. The company's largest selling product is Louisiana Hot Brown Sugar.

  Role of the investment banker and underwriter

Write 150 words about the role of the investment banker and underwriter at C1 Finance Bank. No plagarism and use of a scholarly source required.

  Ge just paid a dividend of 76 cents per share ge pays

ge just paid a dividend of 76 cents per share. ge pays dividends annually and its dividends are widely expected to grow

  What factors should take into consideration when

what factors should i take into consideration when evaluating a companies capital budgeting decisions based on thier

  Decrease in the supply of real money balances

Graphically show what happens to the interest rate if the Fed takes action that leads to a decrease in the supply of real money balances while the economy is in a liquidity trap.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd