subject
Business, 16.10.2020 06:01 MeHelp101

The Conglomerate Corp. has multiple business lines. Because the company is big with diversified business operations, its equity beta is low, approximately 0.8. The company enjoys a lower cost of equity than the average firm. The company is entirely funded by equity, so its cost of equity is also its cost of capital. The company's CEO believes that the company should invest more in high beta projects to take advantage of its lower cost of capital compared to its pure-play peers in those risky businesses. Do you agree with the company's CEO? Briefly describe your reasoning.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 06:40
As a finance manager at allsports communication, charlie worries about the firm's borrowing requirements for the upcoming year. he knows the benefit of estimating allsports' cash disbursements and short-term investment expectations. facing these concerns, a(n) would provide charlie with valuable information by providing a good estimation of whether the firm will need to do short-term borrowing. capital budget cash budget operating budget line item budget
Answers: 3
question
Business, 22.06.2019 18:00
Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
Answers: 2
question
Business, 23.06.2019 01:00
Ido not understand this project overview agricultural commodities are bought and sold through the stock exchange. the price of commodities changes all the time. investors buy many agricultural commodities before they are ready for shipping. when an investor buys an agricultural commodity that is going to be ready in the future, they call this purchasing futures. this might be a future crop, meat that has not yet been processed, or another type of agricultural commodity. for this project, you will have to decide how to spend $10,000. research the new york stock exchange. find one or more agricultural commodities that you are interested in. remember, it may be listed as a future crop. instructions identify the agricultural commodities that you think have the best chance of going up in price. think about what is going on with supply and demand. decide how you will spend your money. you may purchase only agricultural commodities. check the market every day for a week. record the price of your commodity or commodities each day. you may buy or sell your commodities at any time during the week. you may sell your commodities and buy different ones. feel free to experiment with the $10,000 by buying and selling commodities, but make sure to keep a careful record of your activities. at the end of the week, you will write a report on your investments. this report should be structured to include this information: page 1: explain how the stock market works. page 2: list all commodities purchased. describe each in detail. discuss why you selected these commodities. remember, they must be agricultural. page 3: create a chart or graph to illustrate the price of your commodity or commodities over the week’s time. list all of your activity buying and selling. make sure you include prices and details. page 4: write a summary of your experience. describe what you might do differently if you were using actual money. propose potential reasons why the price of each commodity may go up or down.
Answers: 1
question
Business, 23.06.2019 08:30
Which statement defines the term price ?
Answers: 2
You know the right answer?
The Conglomerate Corp. has multiple business lines. Because the company is big with diversified busi...
Questions
question
Mathematics, 26.05.2020 02:58
question
Biology, 26.05.2020 02:58
question
Computers and Technology, 26.05.2020 02:58
Questions on the website: 13722359