oclety percent of population iS fo groups. group percent of the population is poor. Consider two scenarios. group is poor. Suppose Scenario A: The rich have $60,000 each, while the poor have $2,000 each. Scenario B: The rich have $7,500 each, while the poor have $750 each. If you only care about average income and not about equity, you would prefer , which has an average income of S. (Enter your respo dollar.) Now suppose that you only care about equity or inequality. In this case, you would prefer which has a rich-to-poor ratio of. (Round your response to one decimal place.) Finally, suppose you only care about living standards. In this case, you would prefer because it has lower poverty.

In the world with perfect capital market and no taxes, Firm A is unlevered and has an equity beta equal to 2. Firm B is identical to Firm A except that it has a debt to equity ratio equal to one. Assuming B can borrow at 5% risk-free rate and that Firm’s cost of capital is 10%, What are the equity beta and the cost of equity of firm B? A. Firm B has Beta equal to 2, and a cost of equity equal to 0.1 B. Firm B has Beta equal to 4, and a cost of equity equal to 0.15 C. Firm B has Beta equal to 3, and a cost of equity equal to 0.125 D. Firm B has Beta equal to 1, and a cost of equity equal to 0.15

According to MM propositions, at what debt-equity ratio should the cost of equity be the lowest?  Group of answer choices Zero if there is no tax and 1 if a non-zero tax rate is applied. Zero. Infinitely large Zero if there is no tax and indefinitely large if a non-zero tax rate is applied.

if a company profit margin is 0.6 and the current ratio is 0.6, is it advisable to invest in the company or not?

A firm has only two funding sources, debt and equity. Their percentage of debt is 58%, their tax rate is 21.6%, and their pretax cost of debt is 3.05%, If the required return on their equity is 10.39%, then what is their weighted average cost of capital? State your answer as a percentage with two decimal places (i.e., 13.21, not.1321).

You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of 1.5, a debt-to-equity ratio of .4, and a tax rate of 21 percent. Based on this information, what is the asset beta for Lauryn's? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Lauryn's asset 1.22 x beta

utilities versus Petroleum and natural gas                               0.77 versus 1.31 food products (grocery stores)versus Apparel(retailers)          0.68 versus 1.09 Banking (Depository Institutions) versus Financial Trading       0.76 versus 1.09  (Security and commodity Brokers)   For each matched pair of industries, use the CAPM to compute the required rate of return on equity capital for the median firm in each industry. Assume that the risk-free rate of return is 4.0%  and the market risk premium is 5.0%

Need only a and b . Instant upvote.need argunt

Consider an economy with two types of companies, S and I. The profits of companies S always move together, but the profits of companies I move independently of each other. For both firms, there is a 70% probability that the firm's return is 30%, and a 30% probability that the return is -30%. The standard deviation of an individual company's return is closest to the value: Choose one: A.23.0% B.5.25% C.15.0% D.10.0%        Only typed answer

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