This topic contains a solution. Click here to go to the answer

Author Question: What is the significance of industry risk premium and specific company risk premium? What will be ... (Read 157 times)

tsand2

  • Hero Member
  • *****
  • Posts: 520
What is the significance of industry risk premium and specific company risk premium?
 
  What will be an ideal response?

Question 2

Closing entries are prepared to close the
 a. temporary accounts.
   b. accumulated depreciation accounts.
   c. owner's Capital account.
   d. Wages Payable account.
   e. payables and receivables.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

djofnc

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

The industry risk premium is the additional return required to compensate investors for investing in a particular industry. This premium reflects the risk of an industry relative to the risk of the market as a whole. Forensic accountants use authoritative third-party data sources to determine industry risk premiums.
The specific company risk premium is the additional return required to compensate investors for investing in the specific company. This factor reflects the risk of a company relative to other companies in the same industry, due to issues such as depth of management, customer concentration, financial strength, labor constraints, and pending litigation. Although forensic accountants can use market research to evaluate these factors, their quantification is largely based on professional judgment.

Answer to Question 2

a




tsand2

  • Member
  • Posts: 520
Reply 2 on: Jul 6, 2018
Excellent


carojassy25

  • Member
  • Posts: 299
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

For a complete list of videos, visit our video library