Why do utility companies, fast food companies, and low-cost retailers generally have a lower standard deviation than many other firms?
These are evergreen industries and thus market risk is less. These industries are called non-cyclical industries i.e. they do well even in the times of economic stress.
Why do utility companies, fast food companies, and low-cost retailers generally have a lower standard deviation...
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Homework Assignment 5 - Word aces Mailings Review View Add-ins Help Tell me what you want to do . Aa. .A .. = 21 9. AaBbccc Aabbcc AaBbc Aabbcc AaB T Normal 1 No Spac.. Heading 1 Heading 2 Title . E Paragraph Styles Homework Assignment 5: 1. What factors might impact an investor's willingness to take on risk? How might the level of risk aversion vary over time? Explain using examples. 5 points 2. Why do utility...
Companies will generally have a ____ beta if their: Multiple Choice high; sales are high compared to other firms in their industry. low; stock price is relatively low. high; sales are growing at a steady rate of increase. high; sales are highly dependent on the market cycle. low; production costs are primarily fixed in nature.
When it comes to Porter Analysis, of fast food industry,(McDonald's for ex)would bargaining power be high for end consumers because of low switching costs or many substitute choices. OR would it be low because they can't really bargain with the fast food prices to lower anything, after all the individual customer is not the main source of income for these fast food chains because they depend on millions of customers? I getting told different things, what is it to have...
Many companies do a poor job of documenting their internal control procedures. Why is it so important to do this no matter what size of the company? Why is it even more important for businesses like the fast food industry that deal with cash? Please cite an example of an industry that is more prone to internal weaknesses than others.
1) If returns on bonds are generally lower than stocks, why would you invest in them? 2) What causes the price of bonds to change? 3) Why do companies issue bond? What benefits do they get in comparison to issuing equity?
Many home improvement retailers like Home Depot and Lowes have low-price guarantee policies. At a minimum, these guarantees promise to match a rival’s price, and some promise to beat the lowest advertised price by a given percentage. Do these types of pricing strategies result in Bertrand competition and zero economic profits? If not, why not? If so, suggest an alternative pricing strategy that will permit these firms to earn positive economic profits
Many companies, notably cereal manufacturers and fast food outlets, advertise heavily on children’s television programs. What do you see to be the ethical issues of advertising foods to children? Should industry practices be regulated and, if so, to what degree and why?
Corporate Strategies on Outsourcing Research What are the implications for companies seeking lower cost employees but they want the same results? What kinds of challenges can arise and how should the cost vs. efficacy balance out in the medical research companies? Is paying higher costs within USA the answer? How can medical costs be reigned in if we cannot reduce costs by shipping work overseas? Review these and other questions that arise about outsourcing work. No answer is easy and...
There are two downstream key buyers of Pepsi’s (or Coke’s) soft-drink concentrate (syrup): fast-food restaurants and franchised distributors (often called franchised bottlers – they sell within a fixed geography – think of their addressable market as defined geographically by either Coke or Pepsi). Restaurants can serve Coke or Pepsi products or even both – but generally, restaurant chains choose either Coke or Pepsi and they have relatively short term contracts. Franchise bottlers have a long-term contract with either Coke or...
Answer: The cost of debt is usually lower than cost of equity, so why do firms not borrow a lot when external funding is needed? Fill in blank: Due to the flotation cost, cost of new common shares is usually ______ cost of retained earnings.