Shareholders’ funds and Ungeared beta: Difference between pages

Revision as of 13:08, 2 July 2022

The observed beta value for a company incorporates financial and business risk.

The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed.

It is therefore indicative of the business risk of the company.

The ungeared beta is also called the asset beta.

@@ Line 1: / Line 1: @@
-(SHF).
+The observed beta value for a company incorporates financial and business risk.
-''Accounting''.
+The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed.
-The item in a balance sheet which relates to equity capital and reserves.
-The book value of equity.
+It is therefore indicative of the business risk of the company.
-It is equal to net assets, which in turn is the difference between total assets and total liabilities.
+The ungeared beta is also called the ''asset beta.''
 == See also ==
-* [[Balance sheet]]
+* [[Business risk]]
-* [[Book value]]
+* [[Equity beta]]
-* [[Equity]]
+* [[Financial risk]]
+* [[Gearing]]
+* [[Ungeared cash flow]]
-[[Category:Accounting,_tax_and_regulation]]
+[[Category:Corporate_finance]]