South Carolina State University Common Stock of Gentry Company Questions
Question Description
this assignment has to be done in 16 hours.
im taking finance class and i need you to answer the two discussion below in a short paragraph.
1- You own stock in Gentry Company, and you read in the financial press that a recent bond offering has raised the firm’s debt/equity ratio from 35 percent to 55 percent. Discuss the effect of this change on the variability of the firm’s net income stream, other factors being constant. Discuss how this change would affect your required rate of return on the common stock of Gentry Company.
2-“Young people with little wealth should not invest money in risky assets such as the stock market, because they can’t afford to lose what little money they have.” Do you agree or disagree with this statement? Why?

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