firms in the following sectors tend to have high betas:
the following firms are likely to have high asset betas:
Companies with high ratios of fixed costs to total project value tend to have higher betas. True False
Which of the following is true of asset betas? a. Asset betas are expected to vary greatly within firms in the same industry. b. Businesses that are less sensitive to market and economic conditions tend to have higher asset betas than more cyclical industries. c. Businesses that are less sensitive to market and economic conditions tend to have lower asset betas than more cyclical industries. d. A and B are correct.
firms with the highest equity betas have:
Firms tend to use less debt when A. Operating leverage is high O B. Business risk is high C. They have many intangible assets O D. All of the above
Firms in industries such as real estate tend to have distress costs because of a large proportion of tangible assets. O O O A. high OB. low C. constant OD. varying O E. unexpected O
Two firms have the same asset beta but different equity betas. The direct cause is likely: a. The importance of variable costs varies across these firms b. The firms have different proportions of debt relative to equity b. One firm’s sales are more cyclical than the other c. All of the above d. None of the above
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.
Firms with lower expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with higher expected growth rates. Multiple Choice a)equal to b)There is not necessarily any linkage between risk and P/E ratios. c)lower than d)higher than
Large firms tend to be Multiple Choice 0 net users of trade credit. 0 net suppliers of trade credit. 0 firms with high levels of profitability. 0 firms with low levels of inventory turnover and accounts receivable turnover.