This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the significance of industry risk premium and specific company risk premium? What will be ... (Read 132 times)

tsand2

  • Hero Member
  • *****
  • Posts: 520
on: Jul 6, 2018
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
Reply #1 on: Jul 6, 2018
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
Great answer, keep it coming :)

sarah_brady415

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

The evolutionary significance of “Man the Hunter” (or in this instance “Man the Fisher”) has been de The evolutionary significance of “Man the Hunter” (or in this instance “Man the Fisher”) has been de
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
U.S. Cancer Risk—Racial Diversity U.S. Cancer Risk—Racial Diversity
Risk Factors for Diabetes Risk Factors for Diabetes
Possible Causes of Abnormal Specific Gravity Possible Causes of Abnormal Specific Gravity
Natural Resources and Industry Natural Resources and Industry
Video: Role of the respiratory system - effect of altered ventilation rates

For a complete list of videos, visit our video library