Business Studies

A project has an equity beta of 1.2 and debt beta of 0. This project is finance by combination of $$30\%$$ debt and $$70\%$$ equity, then project beta is _______.


ANSWER

0.84


SOLUTION
$$\beta_p$$ = $$\frac{{\beta equity X E}}{D + E}$$ + $$\frac{{\beta debt X D}}{D + E}$$.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 218
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
Transactional Analysis can give employees fresh insights into their own personalities.
  • A. True
  • B. False
  • C. Partly true
  • D. Partly false

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
Which one is more appropriate for cost of retained earnings?
  • A. Weighted Average Cost of Capital
  • B. Opportunity cost to the firm
  • C. Expected rate of return by the investor
  • D. None of the above

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Single Correct Medium
Which one of the following statements regarding 'financial literacy' is not true?
  • A. Its objective is to make people aware of the risks and rewards of investments so that they can make an informed choice.
  • B. India has a formal nationwide structured financial education programme.
  • C. This would enhance the effectiveness and integrity of financial markets.
  • D. It reduces the government burden in protecting the common person from elements of market failure.

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Subjective Medium
Write notes on:
Renewal of deposits.

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
When shares are not payable in a lump sum, third instalment is called ______________.
  • A. Application Money
  • B. Allotment Money
  • C. First Call Money
  • D. Final Call money

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer