Question

In: Finance

19. Which two private company transactional databases cover relatively small companies? a. IBA Market Database and...

19. Which two private company transactional databases cover relatively small companies?

a. IBA Market Database and Done Deals

b. BIZCOMPS and IBA Market Database

c. IBA Market Database and Mergerstat

d. Mergerstat and BIZCOMPS

20. Which component of the Ibbotson Build-Up Method relates to the “unsystematic risk” associated with a particular business entity? Please explain your answer.

a. Risk free rate

b. Equity risk premium

c. Beta

d. Specific company risk premium

Expert Solution

19 Answer:

Option B is Correct:

BIZCOMPS and Institute of Business Appraisers —The BIZCOMPS and Institute of Business Appraisers databases cover transactions of relatively small companies.

Option A is incorrect:

The Institute of Business Appraisers database covers transactions of relatively small companies, however, the DoneDeals database includes deal prices ranging from $1 million to $1 billion.

Option C is incorrect:

The Institute of Business Appraisers database covers transactions of relatively small companies, however,Mergerstat data generally include transactions where one of the companies was publicly traded.

Option D is incorrect:

Mergerstat data generally include transactions where one of the companies was publicly traded, however, BIZCOMPS database covers transactions of relatively small companies

20 Answer:

Option D is Correct

Specific company risk premium: The specific company risk premium relates to the unsystematic risk of a particular business entity.

Option A is incorrect:

Risk free rate: Risk free rate relates to maturity risk. Maturity risk is the risk that the value may fluctuate due to changes in interest rates.

Option B is incorrect:

Equity risk premium: The equity risk premium relates to systematic risk. Systematic risk is uncertainty of future returns based on movements of the market.

Option C is incorrect:

Beta: Beta is not a component of the Ibbotson Build-Up Method

jeff jeffy answered 1 year ago

Why don't private insurance companies cover buildings for floods?

TAXATION IDENTIFICATION 9) These are facilities and privileges which are relatively of small value and are...

TAXATION IDENTIFICATION 9) These are facilities and privileges which are relatively of small value and are offered or furnished by the employer to employees merely as a means of promoting the health, goodwill, contentment or efficiency of employees. 10) This arises when two or more heirs or beneficiaries inherit an undivided property from a decedent, or when a donor makes a gift of an undivided property in favor of two or more donees. TRUE OR FALSE: If the statement is...

You are interested in analyzing some hard-to-obtain data from two separate databases. Each database contains n...

You are interested in analyzing some hard-to-obtain data from two separate databases. Each database contains n numerical values -so there are 2n values total - and you may assume that no two values are the same. You’d like to determine the median of this set of 2n values, which we will define here to be the nth smallest value. However, the only way you can access these values is through queries to the databases. In a single query, you can...

EcoPak Ltd is a small private company, specialising in the manufacture of takeaway packaging, which offers...

EcoPak Ltd is a small private company, specialising in the manufacture of takeaway packaging, which offers an environmentally friendly alternative to disposable food containers. The business’s accountant Kate has prepared a draft version of EcoPak’s Balance Sheet and Income Statement for the financial year ended 30 June 2020. Kate knows she has made several mistakes in classifying the elements of the Balance Sheet and Income Statement because the income statement shows EcoPak has made a loss and the Balance Sheet...

What are the realized returns for the stock market, for Small Companies, Large Companies; long term...

What are the realized returns for the stock market, for Small Companies, Large Companies; long term Bonds, Long Term Gov Bonds, and US T Bills? What investment portfolio would you select (do not include names of mutual funds or stocks, just overall types of investments.)?

Which of the following are types of insurance companies purchase to help cover losses resulting from...

Which of the following are types of insurance companies purchase to help cover losses resulting from employee activity. Choose two A) Victim insurance B) Fidelity bonds C) Conformity bonds D) Casualty insurance

Your company needs a new machine. Two companies are selling this machine in the market, their...

Your company needs a new machine. Two companies are selling this machine in the market, their conditions are as below Company A: The purchase of the new machine at a cost of £15,000. The purchase price includes maintenance for the first two years, but after that maintenance will cost £1,050 a year (payable at the end of each year). The machine will have a useful life of five years, after which time it is estimated that it will have a...

Which of the following is a relatively direct determinant of market structure? Group of answer choices...

Which of the following is a relatively direct determinant of market structure? Group of answer choices economies of scale the possible influence of medium-sized firms the possible influence of the smallest firms the influence of small firms

You will choose two company and will explain which Porter strategy these two companies are using

Curtis Laboratories is a relatively small company that produces widgets that started operations only a few...

Curtis Laboratories is a relatively small company that produces widgets that started operations only a few years ago. The owner is considering expanding operations and has even considered introducing a certain amount of automation. Unfortunately, the owner of Curtis Laboratories is not very knowledgeable about cost management. Production data for Curtis for Year 1 and Year 2 is as follows: Year 1 Year 2 Sales $200,000 $220,000 Variable Production Costs 30,000 35,000 Fixed Production Costs 40,000 45,000 Variable SG&A Expenses 25,000 30,000 Fixed SG&A Expenses 20,000 22,000 Beginning Finished Goods Inventory 15,000 (AC) 35,000 (AC) Ending...