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Chapter 16 -- Operating and Financial Leverage
Chapter 16 -- Operating and Financial Leverage

... A single ratio value cannot be interpreted identically for all firms as some firms have greater debt capacity. ...
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... operations, comprehensive income, stockholders' equity and cash flows for the interim periods ended March 31, 1997 and 1998 have been prepared by the Company, without audit. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly th ...
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... Hördahl et al. (2008), and Rudebusch and Swanson (2008) for bond returns. Most of the empirical work building on long-term predictions of financial returns has used reducedform models for forecasting financial returns. For instance, all the papers mentioned above rely on a VAR(1) model or a factor ...
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Full Text ( Final Version , 366kb )

... The reason for choosing to test this possibly less orthodox “demand side” economic growth thbaeory is that it helps compose a model to predict growth for all the countries studied, which is simpler and it results in a more dynamic global view than the more traditional models. It possibly lacks the d ...
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Techniques, Motives and Controls of Earnings Management

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بورصة بيورت - Beirut Stock Exchange

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Is There Price Discovery in Equity Options?

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chapter 3 - Erasmus University Thesis Repository

... subdued during recessions while the more efficient acquirers earn higher merger profits during “merger waves” than outside of waves. There is a difference in the definition of an Acquisition and a Merger 1, but throughout our study we will treat both terms equivalently. And the most important reason ...
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Download paper (PDF)

... sources detailed in Appendix Table 1. Some summary statistics are provided in Appendix Table 2. While most variables do not require further explanation here, it is important to discuss how we measure capital stock and factor productivity growth. The growth in the capital stock is equal to aggregate ...
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INFORMATION ASYMMETRY AND ITS IMPACT ON COST OF

... Information asymmetry takes place when the knowledge between two participants differs (Mankiw, 2011). There are four aspects of information asymmetry: disclosure of the information, the impact of separation of ownership and control, the quality and the control of the financial statement reporting. A ...
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77 Illustration 1 : Cost of Irredeemable Debtntures : Borrower Ltd

... Illustration 10 : Valuation of Equity Share — Present Value of Future Dividend Flows D Ltd. is foreseeing a growth rate of 12% per annum in the next two years. The growth rate is likely to be 10% for the third and fourth year. After that, the growth rate is expected to stabilise ...
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... the levels of total dependency ratios are higher in the South than the North. But the effects of demographic transitions depend not only on the absolute levels of dependency ratios, and hence on the levels of the underlying birth rates and mortality rates, but also on the sizes of incremental change ...
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... to be made in the wealth composition with speed and at low cost whenever circumstances change. Moreover, competition among the users of capital market funds, including ...
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... The 1.2% per annum reduction in the median real discount rate from tranche 1 to tranche 9 will have increased the recorded liabilities of a typical scheme by around 25% in isolation over this period. Whilst tranche 10 data (covering September 2014 to September 2015) will only become available later ...
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...  Three ways in which we can dispose of a plant asset  Is fully depreciated and has no value to us  We sell it for more than book value  We sell it for less than book value ...
NBER WORKING PAPER SERIES GAME OVER: SIMULATING UNSUSTAINABLE FISCAL POLICY
NBER WORKING PAPER SERIES GAME OVER: SIMULATING UNSUSTAINABLE FISCAL POLICY

... dt+s —two from our model and two from the literature. The first measure of the fiscal gap (fgap1) uses the prices of sure-return bonds that mature s periods from the current period t as the discount factors. Define pt,j as the price of an asset Bt,j with a sure-return payment of one unit j periods i ...
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Stock valuation

In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will, on the whole, rise in value, while overvalued stocks will, on the whole, fall.In the view of fundamental analysis, stock valuation based on fundamentals aims to give an estimate of the intrinsic value of a stock, based on predictions of the future cash flows and profitability of the business. Fundamental analysis may be replaced or augmented by market criteria – what the market will pay for the stock, without any necessary notion of intrinsic value. These can be combined as ""predictions of future cash flows/profits (fundamental)"", together with ""what will the market pay for these profits?"" These can be seen as ""supply and demand"" sides – what underlies the supply (of stock), and what drives the (market) demand for stock?In the view of others, such as John Maynard Keynes, stock valuation is not a prediction but a convention, which serves to facilitate investment and ensure that stocks are liquid, despite being underpinned by an illiquid business and its illiquid investments, such as factories.
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