evaluate the following statement “iam going to increase the weight of equity because I have a...

evaluate the following statement “iam going to increase the weight of equity because I have a lot of growth opportunities but few assets in place.”

Expert Solution

Increasing the weight of equity because of having a large amount of growth opportunity is related to investing into the growing companies which are listed into the marketplace but it is also reflecting that there are a few assets in place so so only growth opportunities can be represented through equities of these companies in the market and it may mean that equities are not listed of many companies who are growing so there are a large number of private companies who are not publicly listed and hence these companies are not having their ownership being created in the markets so investor cannot have exposure in the private companies and hence it can mean that there is a lack of offering of securities by various companies and it will also mean that being a few assets in place is also related to higher number of funds but lower number of investment opportunities in the equities.

It can also mean that the investor only want to have a exploration of growth opportunity through investment into a few assets because he does not want to diversify his funds into a large number of asset portfolio.

jeff jeffy answered 2 years ago

Evaluate the following statement.” Increasing the weight of equity will always lower the WACC”

Critically evaluate the following statement made by a marketing executive: “Advertising is good because it always...

Critically evaluate the following statement made by a marketing executive: “Advertising is good because it always promotes competition.”

The auditors are in the best position to evaluate a company because they have prepared the...

The auditors are in the best position to evaluate a company because they have prepared the financial statements. Do you agree or or disagree? Support your 450 word response with reputable sources.

. The trade unions raise wages and increase employment in the overall economy. Evaluate this statement...

. The trade unions raise wages and increase employment in the overall economy. Evaluate this statement if it is true, false, or uncertain.

I need to calculate if I'm going to gain or lose weight in next 6 moths,based...

I need to calculate if I'm going to gain or lose weight in next 6 moths,based on energy intake and consumption. Which formulas do I need to use?

Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year...

Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. COMMON STOCK Jan. 1 Balance 900,000 Apr. 14 Issued 9,600 shares 384,000 Dec. 31 Balance 1,284,000 PAID-IN CAPITAL IN EXCESS OF PAR Jan. 1 Balance 144,000 Apr. 14 Issued 9,600 shares 76,800 Dec. 31 Balance 220,800 TREASURY STOCK Aug. 7 Purchased 1,600 shares 59,200 RETAINED EARNINGS Mar. 31 Dividend 23,000 Jan. 1 Balance 1,570,000 June. 30 Dividend...

The following are associated with an increase in the required rate of return on the equity...

The following are associated with an increase in the required rate of return on the equity investment except A. a one-time increase in the constant growth rate. B. an increase in the dividend paid. C. an increase in the current price of the stock. D. a decrease in the current price of the stock.

People have died in boat accidents because an obsolete estimate of the mean weight of men...

People have died in boat accidents because an obsolete estimate of the mean weight of men was used. Using the weights of the simple random sample of men from Data Set 1 in Appendix B, we obtain these sample statistics: n = 40 and ?̅ = 172.55 lb. Research from several other sources suggests that the population of weights of men has a standard deviation given by  = 26 lb. Use these results to test the claim that men...

hey I have this program written in c++ and I have a problem with if statement...

hey I have this program written in c++ and I have a problem with if statement {} brackets and I was wondering if someone can fix it. //Name: Group1_QueueImplementation.cpp //made by ibrahem alrefai //programming project one part 4 //group members: Mohammad Bayat, Seungmin Baek,Ibrahem Alrefai #include <iostream> #include<stdlib.h> using namespace std; struct node { string data; struct node* next; }; struct node* front = NULL; struct node* rear = NULL; struct node* temp; void Insert() { string val; ...

Please - Please have an original assignment not copied because I have to submit to a...

Please - Please have an original assignment not copied because I have to submit to a citing program. The purpose of this assignment is to review the current state of development for your state's health information exchange (HIE) and current participation rate. Compare your state (New Jersey) to three states with similar demographics. Write a 1,000-1,250 word summary related to the ability of your state's HIE to share data and improve the following: Coordination of care Public health initiatives Evidence-based...

Question