Question

Detailed explain Equity Investments? Note: only text plagiarism free content

Detailed explain Equity Investments?

Note: only text plagiarism free content

Homework Answers

Answer #1

Equity investments is the type of Investment which is done in the shares of the companies either in the public company or private company. Investments in private company is known as Private Equity.

Ways to Invest in Equity-

1) Stocks

2) Mutual Funds

3) Derivatives

4) Private Equity

Risks involved in Equity-

1) Market risk: this risk arises due to multiple factors that affect the performance of the overall market.

2) Liquidity risk: this is a type of risk which is mainly found in Private Equity investments which are illiquid.

3) Political risk: The risk which arises due to political issues or the instability in the country.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain torque free precession.Derive the equations.Need detailed explanation.
Explain torque free precession.Derive the equations.Need detailed explanation.
Explain “significant influence” criteria used by IFRS standards to classify equity investments. What is the relationship...
Explain “significant influence” criteria used by IFRS standards to classify equity investments. What is the relationship between ownership percentage and “significant influence”? Which criterion do you believe is more important in classifying equity investments and determining their appropriate accounting method, ownership percentage or significant influence? Explain your answer.
Explain how the following items affect equity: revenue, expenses, investments by owners, and distributions to owners.
Explain how the following items affect equity: revenue, expenses, investments by owners, and distributions to owners.
Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 % . CHALLENGES...
Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 % . CHALLENGES / OPPORTUNITIES One of the major challenges is to change the people’s perspective of PepsiCo as an unhealthy soft drink producer. Due to the link of soft drinks to obesity and diabetes, the new CEO wants to reinvent Pepsi as a healthy food producer rather than a snacks producer. Although this is a good plan for the PepsiCo to consider, people who are used...
Explain the standard CAPM method to estimating cost of equity, and how we estimate the market...
Explain the standard CAPM method to estimating cost of equity, and how we estimate the market risk premium and risk-free rate (and why we use this method) Where might we find a beta estimate? Explain the potential problems with this approach. Explain why we might need to rely on data from the company’s 10-k to determine the cost of debt, rather than using only the firm’s market-traded bonds. Why would we want to know more than the interest expense reported...
Vang Enterprises, which is debt-free and finances only with equity from retained earnings, is considering 7...
Vang Enterprises, which is debt-free and finances only with equity from retained earnings, is considering 7 equal-sized capital budgeting projects. Its CFO hired you to assist in deciding whether none, some, or all of the projects should be accepted. You have the following information: rRF = 4.50%; RPM = 5.50%; and b = 0.98. The company adds or subtracts a specified percentage to the corporate WACC when it evaluates projects that have above- or below-average risk. Data on the 7...
Hi I have question how we get answer of part C? Please explain breifly thanks. Problem...
Hi I have question how we get answer of part C? Please explain breifly thanks. Problem 11-6A Partnership entries, profit allocation, admission of a partner LO2, 3, 4 On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $296,000 cash and $392,000 of equipment, respectively. The partnership also assumed responsibility for a $56,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive...
This article illustrates the political economy of international trade and the concept of comparative advantage. Explain...
This article illustrates the political economy of international trade and the concept of comparative advantage. Explain the nations who are the "Winners" and "Losers" (5 points) and why as described in this article, and the effect of "arbitrary government intervention" that circumvents the workings of free trade initiated by Senator Trent Lott as described in the article? Use the economic concept of comparative advantage in your explanation (5 points). Due Jan 15 As a side note - why do a...
Please show me how to apply CVP analysis for this case study. FLY ASH BRICK PROJECT:...
Please show me how to apply CVP analysis for this case study. FLY ASH BRICK PROJECT: FEASIBILITY STUDY USING CVP ANALYSIS S. K. Mitra and Shubhra Hajela wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...