ACT 3050 Lecture Notes - Lecture 9: Emerging Markets, Capital Structure, Product Liability
Document Summary
Economic rate of return - common stock (divs + change in price) / beginning price. Large volume of data that doesn"t change frequently (read only) Weight of 1 for p,o and 4 for most likely, divide by 6. Not part of capital structure, not included in wacc. Forecasting, uses immediate prior period"s actual value as forecast for the next period. Horizontal till full employment and then kinked: vertical line. Nopat + dep expense - capx - change in nwc. Ability to pay noncurrent obligations in the long run. Limited resources to invest in support functions- internal audit, hr, acct, legal. Loss of data integrity and risk of incomplete transactions. Small changes in consumer spending can cause big % changes in investment. Expansionary fiscal policy before election, more restrictive fiscal policy after election. Organizational objectives support and align with the mission. Appropriate risk responses are selected that align risks with the organization"s risk appetite.
