Answer the following questions about Beta and Capital Budgeting
Part 1: Beta
Visit the following web site or other websites: https://finance.yahoo.com/
1. Search for the beta of General Motor(GM) company.
2. In addition, find the beta of 3 different companies within the same industry as GM company.
3. Explain what beta means and how it can be used for managerial and/or investment decision
4. Why do you think the beta of GM company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
Part 2: Capital Budgeting
Review the following information on Capital Budgeting Techniques and answer the questions below the link.
https://www.scribd.com/doc/37253036/Capital-Budget…
To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
• Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.
• Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?
• Why might ethical companies benefit from a lower cost of capital than less ethical companies?
APA Format
At least 1200-1300 words.
3 References
Answer preview:
word limit:1556