Briefly explain the model developed by Beaver, McNichols, and Rhie to predict the chance of failure of a firm.
What will be an ideal response?
Beaver, McNichols, and Rhie have developed an empirical model to predict the chance of failure of a firm during the next year relative to the chance of not failing. It is given by the following model: Log(relative chance of failure) = -6.445 - 1.192 ROA + 2.307 (liabilities/assets) - 0.346(EBITDA/liabilities). It is based on three ratios: ROA, liabilities/assets, and EBITDA/liabilities.
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The Fair Debt Collection Practices Act prohibits:
A) communication with a debtor who is represented by an attorney. B) calls after 6 p.m. C) contacting third persons to find out the whereabouts of a debtor. D) a creditor from calling a debtor regarding payment of a bill.
Kim's home is valued at $250,000. Kim has paid the mortgage¾she has 100 percent equity in the property. She wants to start a new business with Lloyd. To obtain funds, Kim refinances the loan through Metro Bank, borrowing $200,000 for fifteen years at an interest rate of 4.85 percent. Before the loan is completed, Metro provides Kim with all of the required disclosures. On the day of the loan, a fifteen-year Treasury bond is yielding 2.85 percent. Kim pays $7,500 in fees to the bank. Less than a month later, she sells her interest in the new business to Lloyd and wants to rescind the loan. Which federal law covers this loan¾TILA, HOEPA, HPML, or HAMP? Can Kim rescind the deal? Explain.
What will be an ideal response?
Division of the market based on age, gender, household size, and other measurable characteristics is known as
A. demographic segmentation. B. undifferentiated segmentation. C. geographic segmentation. D. socioeconomic segmentation. E. psychographic segmentation.
Selling a site where hazardous wastes were disposed of relieves the seller—and the buyer—of liability for the clean up, as does merging with or buying a corporation that has not violated Superfund.
Answer the following statement true (T) or false (F)