Chapter 10: Analysis and Valuation of Privately Held Companies Answers to End of Chapter Discussion Questions 10.1 What is the capitalization rate and how does it relate to the discount rate? Answer: The terms discount rate and capitalization rate are often used interchangeably. Whenever the growth rate of a firm’s cash flows is projected to vary over time‚ the term discount rate generally refers to the factor used to convert the projected cash flows to present values. In contrast‚ if the cash
Premium Public company Privately held company Private equity
Chapter 7 In this chapter‚ the author uses an example of dieting to show that people use other people’s very basic understanding of markets to control them‚ and how knowing more can save you more. He says that a major contributor to that is that people‚ especially in America‚ can spend money that is not theirs. This is called a credit system (uses credit cards). Being able to do this‚ he says‚ is a good and a bad thing because people can overspend and end up broke. He says that this ties into
Free Economics Investment
Chapter 7 Study Questions 1. What is meant by the term service breakdown? a. the product or service selivered fails to meet customers expectations 2. What causes customers to become dissatisfied? a. when a product or service fails to meet the customers wants or need or does not live up to advertised promises or standards. 3. What can you use to deal with angry customers? a. be positive b. acknowledge the customer’s feeling or anger c. reassure d. remain objective
Premium Decision making
Chapter 7 Risk and Return Recap - Expected Return and Standard Deviation for single asset and 2-asset Portfolio Probability Return(A) Return(B) Good 0.3 - 0.05 -0.10 OK 0.4 0.10 0.15 Poor 0.3 0.20 Portfolio 0.30 E(R) 8.5% Covariance 0.014177 15.68% 11.91% 0.0153 Corr. 0.0246 9.76% S.D. 10.25% 0.009525 Variance 12% 0.99 EQ 7.2 Expected Return: E(RA) = (0.3) (‐0.05) + (0.4) (0.10) + (0.3) (0
Premium Variance Probability theory Standard deviation
A reporter who had previously interviewed Gatsby before the information about his early life was known‚ headed to New York in anticipation of interviewing him again. The truth is Gatsby was born James Gatz in North Dakota on a farm. He attended St. Olaf’s in Minnesota while working as a janitor to pay his tuition‚ but dropped out after only two weeks. The next summer while he worked on Lake Superior digging for clams and fishing for salmon‚ he spotted a yacht owned by Dan Cody‚ who was a wealthy
Premium Jay Gatsby The Great Gatsby F. Scott Fitzgerald
In chapter seven Hooks talks about feminism in the realms of class. Hooks explains that the focus of feminism came to be about the wealthy white upper class women who wanted the same opportunities as men of their own class rather than the focus of women receiving the same benefits to sustain themselves. Working class and middle class women were able to work‚ but they did not make enough money to support themselves. I liked this chapter because Hooks gave a resolution for the problem. Hooks explains
Premium Gender Feminism Sociology
1 Marginal utility is best computed as the: Choose one answer. | D. change in total utility from an additional unit consumed. | | Question 2 If the price of chocolate-covered peanuts decreases from $1.05 to $0.95 and the quantity demanded increases from 180 bags to 220 bags‚ this indicates that‚ if other things are unchanged‚ the absolute value of the price elasticity of demand using the midpoint method is: Choose one answer. | A. 2. | | Question 3 If an increase in the price
Premium Supply and demand Consumer theory
Fall 2013 Corporate Financial Management Due: Thursday‚ October 31st Chapter 7 & Options 1. Assume that you sold a 100 call for $10. Calculate your profit/loss per share if the future stock prices are $80‚ $90‚ $100‚ $110. What type of investor (bullish or bearish) sell a call? Why? 2. Assume that you bought a 110 put for $11. Calculate your profit/loss per share if the future stock prices are $ $90‚ $100‚ $110‚ $120. What type of investor (bullish or bearish) buy a put? Why? 3
Premium Investment Option Call option
ANSWERS TO END-OF-CHAPTER QUESTIONS 14-2 The two principal reasons for holding cash are for transac¬tions and compensating balances. The target cash balance is not equal to the sum of the holdings for each reason because the same money can often partially satisfy both motives. 14-4 The four elements in a firm’s credit policy are (1) credit standards‚ (2) credit period‚ (3) discount policy‚ and (4) collection policy. The firm is not required to accept the credit policies employed by its
Premium Interest Debt Credit
Chapter 7 pgs.182-194 The Rise of Cultural Nationalism Patterns of Education • Republican vision included enlightened citizenry‚ wanted nationwide system of free public schools to create educated electorate required by republic • By 1815 no state had a comprehensive public school system‚ schooling primary by private institutions open only to those who could pay o Most were aristocratic in outlook‚ trained students to become elite. Few schools for poor • Idea of “republican mother” to train
Premium United States Education Republic