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 129 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
:D TYSM


mcabuhat

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

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?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

For a complete list of videos, visit our video library