Shall we use the arithmetic mean or the geometric one
The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?
Expert
The risk premium that is relevant for the calculation of the required return to shares is one explained in A78 and this does not have much to do either along with the historic one or with the implicit or expected ones.
If an investor is considered to be risk-averse, what is his/her attitude towards expected return and standard deviation?
State the term Convertible Bonds in Corporate Bonds?
Provide a brief overview of Capital Market Efficiency?
Are there any methods to analyze and to value seasonal businesses?
Our company (A) is going to buy the other company (B). We need to value the shares of B and, thus, we will use three options of the structure Debt/Shareholders’ Equity in order to obtain the WACC as: 1) Present structure of A
Which of these two ways is better: discounting the Free Cash Flow or discounting the Equity Cash Flow?
AB Corporation has 16% cost of equity, 35% tax rate, and debt-to-equity ratio of 30%. XY Corporation has 30% tax rate and debt-to-equity ratio of 40%. Both AB and XY are in the same business of selling automotive parts. If the riskless rate is 4% and the expected retu
Which currency has to be utilized in an international acquisition in order to compute the flows?
Does this make any sense to form a portfolio comprised of companies along with a higher return/dividend?
Who explained put–call parity?
18,76,764
1953193 Asked
3,689
Active Tutors
1438525
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!