Companies that have higher risk than a competitor in the same industry will generally have

Question

Business

Ainsley Chandler

19 December, 09:20

Companies that have higher risk than a competitor in the same industry will generally have

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Answers (2)

Know the Answer?

Sara Young · Answer 1

To pay a higher interest rate, a lower relative stock price, and a higher cost of funds than its competitors

Brian Ortega · Answer 2

if one companies are at high risk than other in peer-group then that company has to do following:

1) reliable to submit an interest rate more than a competitor having a low risk

2) rate of relative stock should be less than the competitor having a low risk

3) cost of funds should be of high amount than competitor having a low risk

Explanation:

In a peer groups, companies that share the same business and are in competition with each other are added. if one companies are at high risk than other in peer-group then that company has to do following:

1) reliable to submit an interest rate more than a competitor having a low risk

2) rate of relative stock should be less than the competitor having a low risk

3) cost of funds should be of high amount than competitor having a low risk