16. Which of the following is true regarding the sensitivity of the Free Cash Flow valuation model to errors? a. The future terminal (continuation) cash flow is extremely sensitive to forecasting and growth rate errors. b. All else being equal, a terminal (continuation) value computed 10 years from today with a 3% overstatement in the growth rate will bias the intrinsic valuation more than if the terminal (continuation) value computation were made in 6 years with a 3% overstatement in growth. c. Financial statements after the year 2002 provide less accurate information regarding the market value of debt than financial statements prepared in the late 1980’s. d. Cash flow based statements provide more forward looking information than do accrual based statements and valuation methods. e. Free Cash Flow valuations are riddled with errors and do a poorer job of explaining and forecasting stock prices that the Discounted Dividends model.
In: Finance
Looking ahead, what do you see as the future level of crime in the United States? What specific changes do you expect to see in the strategies and policies by which our society responds to crime? What changes would you like to see toward the goal of improving U.S. society?
In: Economics
Does the health care industry have an ethical obligation to seek changes to malpractice laws when such changes would improve public health? In this instance, poor adherence to treatment protocols poses risks of drug-resistant strains of some diseases and virus mutations, which could affect public health.
In: Nursing
Using the class scenario, develop a future scenario that describes at least four reasonable changes in
processes, human factors, and/or technology. Identify your planning assumptions that underlie these
changes. For each change, identify the impact the change will have on the current Enterprise Architecture.
(The class scenario assumes that the orginization is a college campus.)
In: Economics
Enumerate the policy instruments discussed in the Statement (and
Implementation Note) of the
FOMC meetings of July 25-26, 2017 and September 19-20, 2017. Which
policy changes (or future
policy changes) were announced in the last meeting? BRIEFLY discuss
the authority of the FOMC
and the Board of Governors with respect to these policy
instruments.
In: Economics
With the aid of your own fully annotated diagram, discuss the statement above and address why a convexity adjustment is necessary.
In: Finance
Duration provides a good approximation of changes in the price of an option-free bond, when the change in yield is relatively small. However, for large changes in yield a convexity adjustment needs to be incorporated. With the aid of your own fully annotated diagram, discuss the statement above and address why a convexity adjustment is necessary.
In: Finance
With the aid of your own fully annotated diagram, discuss the statement above and address why a convexity adjustment is necessary.
In: Finance
Consider and discuss the interactions between rising or falling costs, the quantity and profitability of products in a business environment. How does variable cost changes affect the contribution margin and profit as opposed to the changes in fixed costs? Provide life examples of how you see these costs in your personal life or business.
In: Accounting
Two types of statistical data can be used to illustrate changes in encounters with death in American society: death rates and average life expectancy. How have these sets of data changed over the last hundred years in the U.S.? How have these changes affected your encounters with death, dying, and bereavement?
In: Psychology