Companies with high ratios of fixed costs to total project value tend to have higher betas.
True |
False |
Answer
True
Companies with high ratios of fixed costs to total project value have more risk and tend to have higher betas
Companies with high ratios of fixed costs to total project value tend to have higher betas....
firms in the following sectors tend to have high betas:
true or false: firms with high market to book ratios are likely to have higher earnings going forward.
The book-to-market effect implies that shares of companies with _____ ratios tend to _____ the market. a) low book-to-market; outperform b) high P/E; underperform c) high book-to-market; outperform d) high P/E; outperform e) high book-to-market; underperform
[1] True or False? (1) Luxury goods companies have low asset turnover ratios and high operating profit margins. [7 marks] (2) In project valuation, one of the advantages of the Payback rule is that it provides a simple way to communicate an idea of project profitability. [7 marks] (3) Equity investors are satisfied with the performance of a company when the cost of equity is higher than ROE (return on equity)7 marks] (4) For Company A, the receivables turnover ratio...
Countries with higher savings rates tend to also have greater capital investment and higher growth rates of output per person. True or false?
5. Market value ratiosRatios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a firm’s observable market value, stock prices, and book values, integrating information from both the market and the firm’s financial statements.Consider the case of Cold Goose Metal Works Inc.:Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $8,000,000 and a current stock price of $14.75 per share....
Market value ratios Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a firm’s observable market value, stock prices, and book values, integrating information from both the market and the firm’s financial statements. Consider the case of Green Caterpillar Garden Supplies Inc.: Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,250,000 and a current stock price of...
6. Market value ratios Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a firm's observable market value, stock prices, and book values, integrating information from both the market and the firm's financial statements Consider the case of Blue Hamster Manufacturing Inc.: Blue Hamster Manufacturing Inc. Just reported earnings after tax (also called net income) of $8,000,000 and a current stock price of $17.50...
Which of the following statements is most accurate? O a. Firms with low PB ratios are value firms and tend to outperform high PB firms. O b. The biggest drawback of using PCF ratio is its inability to address operating efficiency. O c. Higher PEG ratios imply undervalued stocks. O d. PCF is a preferred relative measure compared to PE.
7. Market value ratios Aa Aa E Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market-based ratios, relate to a firm's observable market value, stock prices, and book values, integrating information from both the market and the firm's financial statements. Consider the case of Green Caterpillar Garden Supplies Inc.: Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $8,500,000, and a current...