Author Question: Using the capital asset pricing model, the cost of common stock equity is the return required by ... (Read 59 times)

jake

  • Hero Member
  • *****
  • Posts: 538
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

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

D

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

For a complete list of videos, visit our video library