How do asset values differ between using a traditional DCF approach and a stochastic discount factor approach?
What will be an ideal response?
When implemented correctly, the two approaches will give the same present value. The DCF uses asset-specific state-dependent discount rates and the stochastic approach uses asset-independent, state-dependent discount rates.
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Sayid’s future goal is focused on making a lot of money so that he can buy whatever he wants and have the freedom to travel. He decided that the quickest way to do this is to make promises that he does not intend to keep and to make sure that his employees do not catch wind of his ultimate goal to “get in and get out fast.” Sayid is a good example of which need of McClelland’s acquired needs theory?
What will be an ideal response?
At the breakeven point, the total contribution margin
A) is at the maximum. B) minus total fixed costs equals a negative number. C) equals fixed costs. D) is at the minimum.
At 12/31/2009, the cash and securities held in a sinking fund to redeem bonds in 2011 are classified on the balance sheet as current assets
Indicate whether the statement is true or false
A promise made in return for an act or event that has not yet taken place is unenforceable
Indicate whether the statement is true or false