cash Sweep 2010, equity

mkytz15

What is the effect of Cash Sweep on equity guys?



Edited 1 time(s). Last edit at Monday, June 7, 2010 at 06:45PM by roumancesoiree.

Uranus08

I heard from a little birdie that it generally will do something to the cost of capital but dont quote me on this.

KungFuPanda

so every year a fund cash sweeps its required return of equity declines?

chandsingh

wake2000 Wrote:
-------------------------------------------------------
> I heard from a little birdie that it generally
> will do something to the cost of capital but dont
> quote me on this.


Generally speaking, it means excess cash goes to payoff debt, lowering the riskyness of equity.

economicz

100% agreed

xilige

Yihaaaaaa, from what I read on the forum, I have at least 2/120...already a good start!
But why did they ask about excess earning and direct income approach...

tobeornottobe

I don't really remember this question much, but I picked the MC answer that had the word equity in it... was that right?