QUESTIONS 1. Explain the importance of risk adjustment in the capital budgeting allocation process by answering the following questions. a. Explain why risk adjustments are important and how they can affect firm value. Without the correct risk adjustment the firms stock will lose value by taking on high risk projects. The firm could also be considered uncompetitive if they reject low cost/low risk projects. b. Explain how the single hurdle rate currently used by Northern Forest Products can change
Premium Weighted average cost of capital Risk Capital structure
into trouble after school. They may be bored or under stimulated‚ and instead of choosing something productive to do‚ they roam the streets with their buddies looking for something to keep them busy. Unfortunately‚ that "something to do" can and usually does get them in a lot of trouble. From drugs to violence to having sex‚ our teenagers are at risk. Young people with a lot of free time are potentially more open to get into trouble than those who are involved in sports. That doesn’t mean that every
Premium Adolescence Mother
Wen-hsin Hsu Questions of Cases Case 1: Accounting for the iPhone at Apple Presentation date: Oct 22 (Authors: Brochet‚ Francois;Palepu‚ Krishna G.;Barley‚ Lauren) 1. In your opinion‚ are GAAP or non-GAAP numbers most reflect the economic reality in Apple? 2. Discuss the impact on financial statements for GAAP and non-GAAP numbers. 3. Should APPLE lobby for their non-GAAP numbers to be sanctioned by FASB? 4. Does it matter if the revenue recognition rule for smartphone changes? Case 2: Bausch& Lomb
Premium Depreciation Generally Accepted Accounting Principles Financial statements
3 February 17‚ 2013 The article‚ “The Sharpe Ratio and the Information Ratio”‚ by Deborah Kidd is about the original risk-adjusted performance measure and they are Sharpe ratio and the Information Ratio. William Sharpe designed the first performance metric to insolate excess return per unit of total risk taken. The Sharpe ratio shows whether a portfolio ’s returns are due to smart investment decisions or a result of excess risk. The Sharpe ratio measure dividends average portfolio excess return
Premium Investment Standard deviation Financial ratios
Basic: 1. How is the policy portfolio of Harvard determined? What are the three major asset classes in the portfolio as of May 1999? Internally‚ by the HMC. The Board of the corp determined the Pol Port‚ but the mgmt. was permitted to make short-run decisions within certain constraints. HMC‚ considered 3 things when looking at asset classes: expected future rel returns‚ volatility of real returns‚ and the correlation of the real return on each asset class w/ the real return on all other asset classes
Premium Investment Risk aversion Risk
” but the real question is “Why have you not tried to stop it or call 911?”. In the two articles‚ “Gang Rape Raises Questions About Bystanders’ Role”‚ by Stephanie Chen‚ “The Nuremberg Trials”‚ and the novel Night by Elie Wiesel show how bystander apathy and obedience to authority effect the way a human being reacts to an emergency. But a person’s responsibility when another’s human rights are being violated should be to help stop it before it becomes
Premium Bystander effect Kitty Genovese Psychology
2012 Virtual Exhibit Critique Johannes Vermeer’s “Woman Holding a Balance” The nationalgalleryofart.gov website features an artist by the name of Johannes Vermeer. Johannes Vermeer’s “Woman Holding a Balance” exhibit consists of that single art piece‚ which was created in 1664 with oil on canvas. This realistic piece of art shows a woman holding a balance‚ seemingly lost in her thoughts. In the background is a painting of “The Last Judgment”. Vermeer made it hard to perceive what the woman may
Free Mind Thought Human
accountant‚ she was shocked when her boss required her to use accounting software to transfer all the data from books and journals to the companies’ computer program. She used to do all calculation and recording information using paper and a pen. Shiva trusted the manual method; however she was suffering from spending hours to do her tasks. She knew that accounting process is an integral part of her company‚ thus she was not sure how reliable computer’s software can be. Max Weber (2011) in the article
Premium Computer program Computer Application software
NANO CASE Q-1 Identify target market for nano ? Ans- The target market for nano would be The group of people that belongs th the lower-middle class that earlier could not have thought of a car . Higher-midle class group as well who already owe a car but want to or might be interested in buying another car but cant afford other expensive car . The group of people who would certainly interested into having a compact car . Q-2 What all factors should be
Premium Fair trade Supply and demand Coffee
Seminar 1 : Week of Sept. 8 #1. The word that I found on the online source‚ ‘Merriam- Webster’ was “Schwack.” This word is an adjective meaning a large amount. I also found the opposite of this new found word is “tiddle”. This word portrays the meaning of a small amount. #2 It is impressive in itself watching bees communicate merely by the ‘waggling’ of their bodies in order to tell other bees the exact angular distance available food is from the sun. However‚ could this really be considered
Free Human Meaning of life Word