Capital Financing and Allocation - Equity Capital
4 important questions on Capital Financing and Allocation - Equity Capital
What do equity sources of funding include?
- Stockholders ;
- IPO Initial Public Offering | Selling shares to investors
- Self-funding;
- Family or friends;
- Private investors;
- Venture capitalist;
What volatility characteristic does the CAPM model use?
Explain the concept of the CAPM model
Return of a specific share Rs calibrated to the market risk and return.
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
Give a visual representation of the CAPM model and the meaning of the variables;
- SML | Security Market Line;
- Rs | return of a specific share;
- Rf | risk-free rate;
- Rm | return market portfolio;
- B(eta)m | market risk;
- B(eta)s | share to the market comparison;
- ea | Cost equity;
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding