Question: 4. List 5 essential questions that should be asked when determining the value of a business that is being considered for acquisition. (10 points) 5.
4. List 5 essential questions that should be asked when determining the value of a business that is being considered for acquisition. (10 points)
5. If the risk free rate is 5%, the expected return of the market is 10%, and the required return of ASD company is 22%, what is ASDs beta? (10 points)
6. Briefly discuss the meaning of the following terms: systematic risk, diversifiable risk. Which can be almost eliminated and how would an investor accomplish this? (10 points)
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