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
Is this possible for a company with a positive net income and that does not distribute dividends to get itself in suspension of payments?
Explain lognormal random walk based on Brownian motion.
ABC Corporation stock sells at $27 per share and its dividend per share is $1.20. ABC has price-earnings ratio of 16. The company contains $40 million worth of bonds, selling at par, with 8.5% coupon. The EBIT of ABC is of $12 million and its tax rate is 30%. Calculat
The variance of a portfolio of 40 stocks will be the addition of _______ variance terms and _______ covariance terms. A) 40; 1560B) 40; 1600C) 80; 40D) 1600; 40
Stock Market: To trade company shares (or stock) and derivatives, a stock market or equity market is public entity where these shares and derivatives are sold at agreed price. These are to be listed on a stock exchange in order to trade publicly.
Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
Discuss and distinguish between the following applied approaches to theory development: true-income (income statement and balance sheet approaches), efficient markets, and predictive ability. You may want to include in your discussion any articles or studies that either supported or u
What is the importance and the utility of the given formula: Ke = DIV(1+g)/P + g?
Which data is the most suitable for finding betas?
Capital formation: It is an increase in the stock of capital in particular period is termed as capital formation.
18,76,764
1946745 Asked
3,689
Active Tutors
1425799
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!