How does a company use financial leverage to assess its risk premium?
|I need two answers for both questions
Module 5 DQ 2
Several factors affect the assessment of the risk premium for an investment in a stock. Companies in different countries differ in the levels of financial leverage they exercise. How does a company use financial leverage to assess its risk premium?
|Module 5 DQ 1A manufacturing company from a country considered to be an emerging market has just issued an IPO on NYSE. The company is increasingly becoming a popular outsourcing partner for many US firms. How are market conditions in the US and the company’s country of origin factored? Why is it important?|