Does company debt add or reduce risk to a company's earnings performance? Why?
What will be an ideal response?
Company debt adds risk to a company's earnings performance because the interest payments on that debt must be paid whether a company has a good year or not.
You might also like to view...
Which of the following acts regulates spam e-mail on the Internet?
A) Anticybersquatting Consumer Protection Act B) Controlling the Assault of Non-Solicited Pornography and Marketing Act C) Communications Decency Act D) Uniform Computer Information Transactions Act
All employers with less than 20 employees must comply with the Consolidated Omnibus Budget Reconciliation Act.
Answer the following statement true (T) or false (F)
Rosie's Grill has a beta of 1.2, a stock price of $26 and an expected annual dividend of $1.30 a share which is to be paid next month. The dividend growth rate is 4 percent. The market has a 10 percent rate of return and a risk premium of 6 percent
What is the average expected cost of equity for Rosie's Grill? A) 9.20 percent B) 9.70 percent C) 10.10 percent D) 10.30 percent E) 11.40 percent
Wireless networking uses ____ to connect computers and digital devices to computer networks and often through those networks to the Internet.
A. radio signals B. cables C. both a. and b. D. neither a. nor b.