There are _________ risk and _________ returns to investors in private equity buyouts.
举一反三
- The difference between risk averse and risk neutral investors is that risk neutral investors only consider expected rate of return while risk averse investors needs compensation for risk
- A firm is expected to pay a dividend of $1.00 next year and the dividend is expected to grow at a constant rate of 4 percent over time. Some investors have required returns on investments in equity of 12 percent, some 10 percent, and some 8 percent. The market price of this firm’s stock will be slightly above _________.
- 8．The risk investors have that a callable bond will be called when interest rates fall is Call risk. ( )
- An analyst does research about cost of common equity. With respect to calculating the cost of equity using the bond yield plus risk premium approach, which of the following statements about the risk premium is least accurate（） A: The risk premium compensates for the additional risk of equity compared with debt. B: We often estimate the risk premium using historical spreads between bond yields and stock yields. C: In developed country markets, a typical risk premium added is in the range of 2 to 4 percent.
- To raise money for a new business you have three options: bank debt, private investors or ________________ _________________.