Author Question: If a viable firm is not growing but is expected to continue over time, then we would expect changes ... (Read 10 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
If a viable firm is not growing but is expected to continue over time, then we would expect changes in net working capital to be equal to:
 
  A) a percentage of total sale.
  B) EBIT.
  C) depreciation.
  D) 0

Question 2

White Company stock has a beta of 2 and a required return of 23, while Black Company stock has
  a beta of 1.0 and a required return of 14.
 
  The standard deviation of returns for White Company is
  10 more than the standard deviation for Black Company. The risk-free rate of return according to
  the CAPM is
  A) 5.
  B) 6.
  C) 4.
  D) impossible to determine with the information given.



kjohnson

  • Sr. Member
  • ****
  • Posts: 330
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

For a complete list of videos, visit our video library