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I start my disclaimer that i might be wrong..But i must give it a Try...
Now According to the cost of equity formula it is =Rf+B(Risk premium),,,,risk premium is nothing but the difference b/w Rm-Rf.....so the equation becomes Rf+B(Rm-Rf)..here Rm is Expected returns from the stock........
When the Rf increases Ist part of the equation increases the cost of equity whereas if we see the second part of the equation decreases the cost of Equity(If Rm is kept constant)......but As Rf increases the Rm also increases and hence the The Second part of the equation Also increases so the effect of Increases Cost of equity....
I hope i made some sense....
What else can I help you with?
When the temperature of an object increases would the wavelength of energy radiates increase or decrease?
Increase
What factor will increase the speed of a sound wave in the air?
Speed of sound would increase as the temperature of the air increases Speed of sound increases as humidity of air increases Speed of sound is affected by the density of the air. As density increases velocity of sound decreases
Wich reactions would have an increase in entropy?
A gas typically increases the entropy much more than the increase in moles.
What would happen if the force causing the deformation became greater?
The deformation would increase because the force increases.
Which would increases the reaction rate?
Temperature
What will increase an asset and increase owners equity?
The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
If An investment by a company's owner increases a company's cash would it increase owners equity?
yes
What transactions increase in one owner's equity equals decrease in another owner's equity?
Profits would increase owners equity, loss and drawing would decrease an owners equity.
If a risk-free rate increases what impact would it have on the cost of equity?
It would increase the cost of equity: re=rf + b*(RP) re is the cost of equity rf is the risk free rate b is the beta of the stock RP is the risk premium of the stock
What would increase an actors' equity?
An actor would have an increase in equity if he starred in a new movie or acted in many movies in a short amount of time. He may also have an increase in equity if a scandal is going around about him.
How do you post an increase in an asset and an increase in equity?
To post an increase in an asset, you would debit the asset account, reflecting its rise in value. Simultaneously, to record an increase in equity, you would credit an equity account, such as retained earnings or contributed capital. This dual entry maintains the accounting equation (Assets = Liabilities + Equity) and ensures that the financial statements remain balanced. For example, if a company receives cash from an owner, it would debit Cash (asset) and credit Owner’s Equity (equity).
What transaction would increase a liability and decrease equity?
A transaction that would increase a liability and decrease equity is when a company takes out a loan. The loan amount increases the liabilities on the balance sheet, reflecting the obligation to repay the borrowed funds. Simultaneously, if the loan proceeds are used to purchase an asset that does not generate immediate revenue, it can lead to a decrease in equity due to interest expenses or other costs associated with the loan affecting retained earnings.
What are the possible ways to increase debt-equity ratio?
The debt-to-equity ratio is a very simply calculation. Just divide a company's outstanding debt at a given date (usually quarter-end or year-end) by the company's equity on that same date. So, to increase this ratio, you would need to either increase the debt balance (i.e. borrow more) or decrease the equity balance (i.e. pay a dividend). Keep in mind, while increasing the debt-to-equity ratio will increase the ROE (return on equity) for a company, it also increases risk. Additionally, most banks include covenants in their loans that limit the debt-to-equity ratio for their customers (thereby making certain that the company has an equity "cushion" should an economic downturn occur).
What would increase the need for external equity?
a reduction in corporate profits
When the temperature of an object increases would the wavelength of energy radiates increase or decrease?
Increase
What increase as the average energy of the motion of the particles of matter increase?
The temperature of the substance would increase as the average energy of particle motion increases. Additionally, the pressure exerted by the particles on the walls of the container would also increase.
Would glucose in urine increase output or decrease it?
increases
