RISK-ADJUSTED DISCOUNT RATES and LIABILITY BETA RUSSELL E. BINGHAM T H E H A R T F O R D FINANCIAL SERVICES G R O U P Table of Contents Page 2 3 5 7 8 11 12 13 14 14 15 16 17 17 18 Subject Abstract 1. Summary 2. Total Return Model 3. After-Tax Discounting 4. Derivation of Risk-Adjusted Discount Rate and Liability Beta Figure l : Baseline Risk / Return Line vs Leverage 5. Liability Beta Figure 2: Equity vs Liability Beta Figure 3: Equity Beta vs Risk-Adjusted Discount Rate (After-Tax)
Premium Net present value Time value of money Cash flow
Why do you think people attend college or university Education is a very important part for human life‚ that is why people spend their time in educational field‚ which starts from Kindergarten to College. When students finished high school‚ they need to make an important decision either to continue studying‚ which means attending college‚ or to start working and planning for their life right away. However‚ many students choose to go to college because some of them think that they can increase their
Premium University Higher education Academic degree
Why do you think humans are motivated to learn? Discuss motivation for learning from the following perspectives: In the current 21st century that we live and work‚ daily people are introducing new policies‚ new ideas and approaches emerge. New problems also arise and new solutions are sought. The world is therefore constantly moving and evolving. Result the requirement for humans to constantly learn and adapt new circumstances as we go in order to follow the demands of the modern working world.
Premium Psychology Maslow's hierarchy of needs Motivation
THE EFFECTS OF EXCHANGE RATE IN INFLATION OUTPUT AND THE CURRENT ACCOUNT ABSTRACT The empirical studies on the effects of changes in exchange rates on inflation and real activity can be broadly divided into four categories: Single-equation econometric methods‚ Vector autoregressive (VAR) models‚ Structural macro econometric models and DSGE models - Dynamic stochastic general equilibrium. Methodologies: First‚ most participants use single-equation econometric methods that estimate
Premium Central bank Monetary policy
Why do you think the thief was an outcast? Suggest reasons why his fingers had been cut away. Why do you think the thief responds to the boy by surrendering? Explain the man’s punishment of the thief. Do you think he did the right thing? How does the boy feel about his father’s action? The thief was an outcast because he was by himself without anything but the butcher knife and the clothes on his back. The fingers on his right hand had been cut away most likely because he was an outcast probably
Premium Road Bicycle National Film Registry
In order to consider “I exist because I think” or ”I think because I exist”‚ I would define the “I exist because I think” as “I think” is the cause of “I exist”. This implies “I think” appear before “I exist” and cause “I exist” to happen. In the other side‚ “I think because I exist” would be “I exist” is the cause of “I think”. This implies “I exist” appear before “I think” and cause “I think” to happen. In terms of logic‚ I would say “I think because I exist “ is more appropriate. It is because
Premium Critical thinking Mind Existence
Outsourcing Journey - Assignment #5 Question: Why do you think Lego’s outsourcing “failed”? (What factors explain the short-lived outsourcing relationship between Lego and Flextronics?) To answer this question‚ I want to state the fact that short-lived relationship between Lego and Flextronics was not a total failure. And to begin with‚ I want to list some of things that Lego learned through this outsourcing. From this list‚ we can also see why their relationship was short-lived. * There
Premium Knowledge Skill Critical thinking
You must do things you think you cannot do Honorary guest‚ lecturers‚ parents‚ fellow graduates‚ good afternoon. I am your valedictorian Oshane Thomas and I am charging you today to do the things you think you cannot do. The important actions aren’t easy. They are hard because of our fears. No one is without them. One of my fears is being here today talking to you. On preparation for graduation‚ I was notified that I had to deliver a speech and the thought of actually doing it terrified me
Premium Thing Mind Thought
Why Do You Have Sensitive Teeth? Do you a pain that is sharp and stinging when eatings foods that are too cold or hot? Sensitive teeth can cause you to no longer enjoy some of your favorite foods‚ but it is a problem that is not just an annoyance. Sensitive teeth are often an indication that you have another underlying problem with your teeth. There are ways to fix problems with sensitivity and enjoy those favorite foods one again‚ btu it starts by understanding what is causing teeth sensitivity
Premium Nutrition Obesity Eating disorders
CHAPTER 4 (MANKIW) INFLATION RATES AND INTEREST RATES: THE FISHER EQUATION NOTES by: Chadia Mathurin Economists differentiate between real and nominal interest rates where: real interest: is defined as the increase or decrease in a consumer’s purchasing power experienced as a result of changes in the interest rate. nominal interest: is defined as the interest payed by the bank. Let: i denote the nominal interest rate r the real interest rate pi ‚ the inflation rate The equation for
Premium Inflation