Which portfolio has the highest systemic risk? THE CORRECT ANSWER 50% invested in a stock with beta = 1.0 50% invested in a stock with beta = 2.0 WHAT YOU NEED TO KNOW Portfolio beta measures the portfolio’s sensitivity to systematic risk (market risk). When used with stocks, beta is a multiplier...
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BUS 401: Principles of Finance Costco week 1 assignment summary
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Add to cartBUS 401: Principles of Finance Costco week 1 assignment summary
When a firm buys back outstanding shares of common stock, which of these measures increase? ANSWER THE CORRECT ANSWER EPS and BVPS When a firm buys back outstanding shares of common stock from shareholders, the number of outstanding shares is reduced. Therefore, the per-share measures, ear...
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Add to cartWhen a firm buys back outstanding shares of common stock, which of these measures increase? ANSWER THE CORRECT ANSWER EPS and BVPS When a firm buys back outstanding shares of common stock from shareholders, the number of outstanding shares is reduced. Therefore, the per-share measures, ear...
QUESTION: REVIEWING 1 OF 7 A public company sold $100 million of new shares of common stock and held the proceeds as cash to use for future acquisitions. What happened to ROE? THE CORRECT ANSWER: ROE decreased. WHAT YOU NEED TO KNOW Stockholders equity (or just “equity”) is calculated as:...
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Add to cartQUESTION: REVIEWING 1 OF 7 A public company sold $100 million of new shares of common stock and held the proceeds as cash to use for future acquisitions. What happened to ROE? THE CORRECT ANSWER: ROE decreased. WHAT YOU NEED TO KNOW Stockholders equity (or just “equity”) is calculated as:...
What is Moody’s formula for Liquidity? THE CORRECT ANSWER Three companies report financial data in thousands of dollars. Which company is most reliant on debt financing? ANSWER INCORRECT Yukon Trucking Total Assets: 100,000 Total Equity: 20,000 YOU WERE SURE AND INCORRECT Kodia...
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Add to cartWhat is Moody’s formula for Liquidity? THE CORRECT ANSWER Three companies report financial data in thousands of dollars. Which company is most reliant on debt financing? ANSWER INCORRECT Yukon Trucking Total Assets: 100,000 Total Equity: 20,000 YOU WERE SURE AND INCORRECT Kodia...
Which portfolio has the highest systemic risk? THE CORRECT ANSWER 50% invested in a stock with beta = 1.0 50% invested in a stock with beta = 2.0 WHAT YOU NEED TO KNOW Portfolio beta measures the portfolio’s sensitivity to systematic risk (market risk). When used with stocks, beta is a multipli...
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Add to cartWhich portfolio has the highest systemic risk? THE CORRECT ANSWER 50% invested in a stock with beta = 1.0 50% invested in a stock with beta = 2.0 WHAT YOU NEED TO KNOW Portfolio beta measures the portfolio’s sensitivity to systematic risk (market risk). When used with stocks, beta is a multipli...
The company that I have chosen to report on is COSTCO Wholesale Corporation. COSTCO compares to the overall market by dominating the industry. COSTCO is one of the top retail chains in the United States and globally. COSTCO provides their customers with retail service online and in-store. It is a...
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Add to cartThe company that I have chosen to report on is COSTCO Wholesale Corporation. COSTCO compares to the overall market by dominating the industry. COSTCO is one of the top retail chains in the United States and globally. COSTCO provides their customers with retail service online and in-store. It is a...
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