What is a price differential and how is it computed? What information does a price differential provide to an analyst?
The price differential is the amount the market has discounted share price for risk. It is calculated by subtracting the market price from the residual income model price calculated using the risk-free rate of interest as opposed to the firm's equity cost of capital. It allows the analyst to gauge whether the market discount for risk is sufficient to compensate the investor to hold the firm's shares and bear risk.
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Which of the following is true of store retailers?
A) A hard-discount store offers a wider merchandise mix than discount stores at higher prices. B) A discount store offers leftover goods, overruns, and irregular merchandise sold at less than retail. C) A specialty store generally stocks a very narrow product line. D) An extreme value store generally has a broad selection of high-markup, brand-name goods. E) A catalog showroom is a large, low-cost, low-margin, high-volume, self-service store.
Which of the following is not something you should do when conducting an audience analysis?
A) Determine what the audience already knows about the topic. B) Determine what the audience's predisposition toward the topic is. C) Ask how your proposal will affect the audience. D) Find out whether the audience finds you credible. E) Make a simple list of features and advantages of the product or service.
Ian's records show a cash balance of $2,000 while the bank statement shows a balance of $1,800. The difference is most likely explained by
A) unrecorded interest earned on the account. B) deposits made after the statement period. C) checks not cleared during the statement period. D) a statement period less than one month.
Suki is a registered agent for Trans-state Trucking, Inc. (TTI), which incorporated in Utah. As a registered agent, Suki
A. agreed to buy stock in TTI before it existed. B. applied to Utah on behalf of TTI to obtain its corporate charter. C. does business for TTI in Utah. D. receives legal documents on behalf of TTI.