Lecture 4 - Marriott Flashcards by A C | Brainscape

Q

a higher LT risk free rate could reflect

A

expected future increases in ST rates
liquidity premium
risk premium

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Q

when using comparable firms to get asset beta of divisions, weight comparable firms by…

A

total assets
revenues
operating profits

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Q

don’t use NI as a weight bc…

A

NI is affected by interest

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