User Account

All Pages

Relationship between the growth rate and risk

Assignment Help Macroeconomics
Reference no: EM131298652

Companies ABC and XYZ are similar in asset size ($3 billion), asset volatility (30%),ROE (20%) and dividend-payout ratio (30%), but differ in the following way:

ABC

XYZ

Profit Margin

10%

12%

Asset Turnover

160%

120%

(a) Which company riskier? Brie?y explain why.

(b) What is the growth rate of each company?

(c) What does your answer in part above say about this relationship between the growth rate and risk?

Reference no: EM131298652

Questions Cloud

Would the waxman-markey law achieve production efficiency : Electricity producers would spend $208 million a year to comply with the new rules. (Think of these dollar amounts as dollars' worth of other goods and services.)
Prepare the cost-volume-profit income statement : You are a new graduate from Morgan State University, and you just got the job of a lifetime at the New York office of Baby Boom, Inc., Prepare the Cost-Volume-Profit income statement for 2012 based on Ms. Trainor's estimates. Compute the break-even ..
Social security and medicare : What do economists mean when they say Social Security and Medicare are "pay-as-you-go" plans? What are the Social Security and Medicare trust funds, and how long will they have money left in them? What is the key long-run problem of both Social Se..
What is opportunity cost of producing an additional pizza : Can Foodland produce 30 pizzas and 30 loaves of bread a day? If it can, is this output efficient, do the people of Foodland face a tradeoff, and what is the opportunity cost of producing an additional pizza?
Relationship between the growth rate and risk : (a) Which company riskier? Brie?y explain why. (b) What is the growth rate of each company? (c) What does your answer in part above say about this relationship between the growth rate and risk?
Differences between popular and scholarly sources : Explain at least five differences between popular and scholarly sources used in research.- In your summary of each article, comment on the following: biases, reliability, strengths, and limitations.
Discuss the pros and cons of each method of valuation : Compare and contrast the factors that contributed to the EPS and present your views as to which company would be the better investment. Support your response with examples.
Explain how the farm’s production possibilities will change : If the farm adopted a new technology, which allows it to use fewer resources to fatten chickens, explain how the farm's production possibilities will change. Explain how the opportunity cost of producing a bushel of soybean will be affected.
What are there technological factors and trends : Your environmental scan must include all of the following elements: What are there Technological factors and trends? What are there Geographic factors and trends?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Benefits of monopolistic competition outweigh

Why might the benefits of monopolistic competition outweigh the inefficiencies? Monopolistic competition has higher deadweight loss than monopoly?

  Find the effect on the federal funds rate if the fed did not

"Sweep" accounts are combination checking/money market accounts which large banks currently offer to their corporate customers. These accounts sweep just enough funds out of the money market portion of the account to prevent checks written on the ..

  Discuss critically gdp as a measure of economic welfare

Why do the economists use real GDP rather than nominal GDP to gauge economic well-being and discuss critically GDP as a measure of economic welfare and how each of the following events is likely to affect GDP?

  What was the principal debt instrument used

The US economy borrowed heavily from the British in the nineteenth century to build a railroad system. What was the principal debt instrument used? Why did this make both countries better off?

  Explain the concept of opportunity cost

Question: Explain the concept of opportunity cost and use it in an example?

  Profit-maximizing monopolist

1). The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:

  Assignment on operations decision

Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.

  Consider a bond that promises to pay 100 in one yeara what

consider a bond that promises to pay 100 in one year.a. what is the interest rate on the bond if its price today is 75?

  Fiscal policy the hypothetical information in the following

the hypothetical information in the following table shows what the economic situation will be in 2015 if the fed does

  Make sure to discuss how facebook has both impacted

Make sure to discuss how Facebook has both impacted and been impacted by the technological and other changes that comprise a low-friction economy as well as in terms of supply and demand.

  Evaluation of salary plan based on incentives

Leisure-Time boats is a manufacturer of mid-to-high end boats with 12 sales territories throughout the U.S. Sales are generated by salespeople in each territory who develop relationships with boating distributors and related retailers.

  Computation of arc elasticity of demand

Suppose that this price cut was completely responsible for its raise in revenues from 460 million yen in 1966 to 640 million yen in 1967. Compute the indicated arc elasticity of demand.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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