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There are two companies.Company 1 has a Beta of .4 and Company 2 has a Beta of 1.8.Which of these companies is an electric utility
- There are two companies.Company 1 has a Beta of .4 and Company 2 has a Beta of 1.8.Which of these companies is an electric utility and which is a technology company?
- As a company uses more and more equity in its capital structure (and less debt) what is it doing to the financial risk of the company - increasing it or decreasing it?
- You are running a company with two divisions. One division is high risk and the other division is low risk. Which division should (or is expected to) earn a higher rate of return or ROIC? Why?
- Do most industries have the same optimal financing mixture, or does it change depending on the industry? Explain.
- You are running a company with two divisions. One division is high risk and the other division is low risk. Which division should get additional funding for its proposed projects? Why?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
