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Business
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Number of pages / Number of words: |
7 / 1809 |
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Essentially, the CAPM finds the rate of return like the IRR method under DFCM does. The CAPM also "implies that investing in individual stocks is pointless, because you can duplicate the reward and risk characteristics of any security just by using the right mix of cash with the appropriate asset class" (Moneychimp, n...
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As the table below shows, the debt ratio of companies can vary greatly. The industry can be an enormous factor. A hotel has large fixed costs, due to the services it provides. Conversely, a company dependent on innovationâ pharmaceuticals, software design â may desire small returns quickly as opposed to large returns after heavy investment...
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