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Author Question: If a viable firm is not growing but is expected to continue over time, then we would expect changes ... (Read 13 times)

tfester

  • Hero Member
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  • Posts: 534
on: Jul 11, 2018
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
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  • Posts: 330
Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

A


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