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Author Question: Using the capital asset pricing model, the cost of common stock equity is the return required by ... (Read 116 times)

jake

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  • Posts: 538
on: Jul 11, 2018
Using the capital asset pricing model, the cost of common stock equity is the return required by investors as compensation for ________.
 
  A) the specific risk of a firm
  B) a firm's unsystematic risk
  C) price volatility of the stock
  D) a firm's nondiversifiable risk

Question 2

In the DuPont system of analysis, the return on total assets (asset) is equal to ________.
 
  A) (return on equity)  (financial leverage multiplier)
  B) (return on equity)  (total asset turnover)
  C) (net profit margin)  (fixed asset turnover)
  D) (net profit margin)  (total asset turnover)


jaaaaaaa

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Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

D


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