INTRODUCTION Corporate governance is the framework of rules and practices by which a board of directors ensures accountability‚ fairness‚ and transparency in a company ’s relationship with its all stakeholders (financiers‚ customers‚ management‚ employees‚ government‚ and the community). The corporate governance framework consists of (1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities‚ rights‚ and rewards‚ (2) procedures for reconciling
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capital asset pricing model (CAPM). First‚ a risk free rate must be determined; this was done by taking the average return of the Long-Term U.S. government bonds and averaging it for the years 1987‚ 1986‚ 81-85‚ and 80-76. This came out to be a risk free rate of 9.14%. Next‚ the market risk premium needed to calculated‚ this equation is the spread between expected market return and the risk free rate. The same method to find the risk free rate was used to find the market risk premium‚ by taking average
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Evaluating Mental Retardation The history of mental retardation originated during the era of therapeutic papyri of Thebes‚ Egypt (Biasini‚ Bray‚ Grupe‚ & Huffman). Although the concept was unclear‚ because of complications in translation‚ these documents evidently refer to psychological and biological disabilities due to damages of the brain (Biasini). Those assumed to posses these developmental disabilities were habitually victims of infanticide and homicide. The se outcasts were often sold
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Free exchange Savers’ lament The complex effects of low interest rates on consumption and investment Dec 1st 2012 | from The Economist print edition WHEN interest rates hit double digits in the late 1970s‚ house-builders sent planks of wood to the Federal Reserve in protest. With rates stuck near zero‚ the protests now come from the opposite direction. The retired complain of a “war on savings”. The Fed cut rates to current levels at the end of 2008 and has promised to keep them there until
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Methods of Corporate Valuation Prof. Ian H. Giddy‚ New York University | What is my company worth? What are the ratios used by analysts to determine whether a stock is undervalued or overvalued? How valid is the discounted present value approach? How can one value a company as a going concern‚ and how does this change in the context of a potential acquisition‚ or when the company faces financial stress? Finding a value for a company is no easy task -- but doing so is an essential component
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Investment Policy‚ Ethics‚ and Portfolio Management March 10‚ 2010 Mid-Term Problems Chapter 13 Question 1) Briefly describe the results of studies that examined the performance of alternative industries during specific time periods and discuss their implications for industry analysis. Industry analysis is performed and relevant because different industries have different performance over time periods and during different stages of the business cycle. Yearly performance studies
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concerning risk premium? A. The greater the volatility of returns‚ the greater the risk premium. B. The lower the volatility of returns‚ the greater the risk premium. C. The lower the average rate of return‚ the greater the risk premium. D. The risk premium is not correlated to the average rate of return. 5. You bought 100 shares of stock at $20 each. At the end of the year‚ you received a total of $400 in dividends‚ and your stock was worth $2‚500 total. What was your total return? A. 45%
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VICTORIA UNIVERSITY FACULTY OF BUSINESS SCHOOL OF LAW BLO 2205 CORPORATE LAW ASSIGNMENT Semester 1 2010 Melbourne Pty Ltd has one company secretary‚ Jill and four directors: William‚ Jack‚ Susan and Sarah. William is the managing director of the company while the rest of the directors are non executive directors of the company. Susan is an experienced business woman with other business interests and she is not involved in the running of the company. She leaves the running of the company
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proprietorship. * Ability to attract investment. Corporations can raise capital through the sale of equity. * Continuous life. Sole proprietorships have a limited life‚ while corporations have a potentially perpetual life. * Transfer of ownership. It is easier to transfer ownership in a corporation through the sale of stock. The biggest disadvantage is the potential cost including more expansive record-keeping. Lecture 2 (chap 7+8) ACCOUNTING RATE OF RETURN Pros: * ARR provides
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and auctions. Are pre-sale estimates unbiased and fully informative?‚” Louvain Economic Review‚ 66‚ 131-144. [4] Chossat‚ V. and O. Gergaud (2003)‚ “Expert opinion and gastronomy: the recipe for success‚” Journal of Cultural Economics‚ 27‚ 127-141. [5] Combris‚ P.‚ S. Lecocq and M. Visser (1997)‚ “Estimation of a hedonic price equation for Bordeaux wine: does quality matter?‚” Economic Journal‚ 107‚ 390-402. [6] Di Vittorio‚ A. and V. Ginsburgh (1996)‚ “Des ench`res comme r´v´lateurs du classement
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