The Usefulness of Accounting Estimates for Predicting Cash Flows and Earnings Baruch Lev* New York University Siyi Li University of Illinois Theodore Sougiannis University of Illinois and ALBA January‚ 2009 * Contact information: Baruch Lev (blev@stern.nyu.edu)‚ Stern School of Business‚ New York University‚ New York‚ NY 10012. The authors are indebted to the editor and reviewers of the Review of Accounting Studies for suggestions and guidance‚ and to Louis Chan‚ Ilia Dichev‚ John Hand
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This is a short story of failures. It is rather a chilling story of how a single person‚ under the most common work circumstances‚ can lose $750 millions! And he does so‚ by bullying his subordinates‚ intimidating his colleagues‚ threatening his supervisors‚ bribing his counter-parties‚ forging documents‚ falsifying the data‚ and betting more and more after having lost the most. A perfect example of "escalation of commitment". A fantastic case of complacence over compliance. This is only the first
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INTRODUCTION The Million Peso Money Drop is a Philippine game show on TV5. Unlike its UK counterpart‚ this version is pre-recorded and not broadcast live. The show is hosted by Vic Sotto. This is the second Endemol program adapted by TV5 after Extreme Makeover: Home Edition Philippines. This version of the show is based heavily on the American version which in turn is based on The Million Pound Drop Live. At the beginning‚ a pair of contestants are presented with a million pesos (40 bundles of
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1 Samuel 31‚ 2 Samuel 1-10 – First Samuel ends with Saul’s death. Rather than facing the torment of the Philistines‚ he falls on his own sword‚ but the first chapter of 2 Samuel gives a different account. An Amalekite reports to David that he killed Saul after Saul asked him to run him through with the sword. Either way‚ Saul is now dead‚ and David is made king of Judah‚ while Ishbaal (Saul’s son) supposedly reigns over the rest of Israel. Abner supports Ishbaal at first‚ but after having been
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Chapter 3: Financial Statements‚ Cash Flow‚ and Taxes This chapter has a lot of definitions. They are important‚ but we don’t like to make students memorize too many of them early in the course. We let our students use a formula sheet that includes the key definitions. Note that there is an overlap between the T/F and multiple-choice questions‚ as some of the T/F statements are used in multiple-choice questions. Multiple Choice: True/False 1. The annual report contains four basic financial statements:
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that a strong correlation between estimated future cash flows and the value of a firm exists (Copeland et al‚ 1994 ; Brealey and Myers ‚ 2000; Jones‚ 1998 ). In their study of 51 highly leveraged transactions (HLTs) ‚ Kaplan and Ruback (1995) found that the valuations using the DCF methods are within 10%‚ on average‚ of the market value of the transactions‚ providing a strong relation between the market value and discounted cash flow forecasts. In addition‚ they found that the DCF methods perform
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Therefore‚ the conversion process was intended to expand operations‚ compete against larger corporations such as Yahoo and MSN and within their first year‚ they had an abnormal growth of 135% overtaking competitors (Google n.d; Pagano‚ Panetta‚ & Zingales‚ 1998). Less than decade‚ from 2013 to 2014‚ there has been a 20% growth from $37‚422 million to $45‚085 (Google information table). This excellent strategy‚ especially during the looming financial crises as a result was a two-fold play. First
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&RPage |1 Entrepreneurial Finance 2013 - Case Assignment Questions R&R R&R case brings up major themes that we will see over and over again in this course. This case also differs significantly from most of the other case you will read in this course as it provides a full story of an entrepreneurial venture. In most other cases in this course‚ the entrepreneur is faced with a decision/dilemma at the time of case. In these cases I will ask you to put yourself in the entrepreneur’s shoes and come
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communications services‚ building shareowner value in the process. (1) Vision Statement Connect people with their world‚ everywhere they live and work‚ and do it better than anyone else. (2) Corporate Objectives Financial Objectives 1. Wireless Unit 2. Enterprise unit 3. Capital Expenditure 4. Satellite Services 5. Strong Growth in Free Cash Flow 6. Share Repurchase Wireless Unit The earnings growth of the wireless unit is expected to reach mid-teens partially attributed to the acquisition
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this question: where do I see myself in 10 years? I always had this vision of where I was going to be at this point of my life. And quite frankly‚ I’m not at that point. Though‚ the reason why I’m asking myself this is the fact that I question if this online entrepreneurship is something I will be able to do for most of my life or is it just another job that may not last forever? For me‚ each year changes especially the fact that I’m a go-with-the-flow type of person. But if I had a vision‚ it’d be
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