Reporting of Intercorporate Investments Reporting of intercorporate investments depends on the percent of ownership in the investee. There are four …
Mutually Exclusive Projects with Unequal Lives There are two methods we can use to pick projects when the project lives …
Cobb-Douglas Function The Cobb-Douglas Function states that GDP is a function of labor and capital inputs, and their respective productivity. …
Current Account and Exchange Rates Current deficits tend to lead to depreciation of the domestic currency. There are 3 mechanisms …
Mark-to-Market An application of the forward rate valuation equation is the calculating the mark-to-market value of a forward currency contract. …
Price vs Value of Forward Contracts First we look at the difference between the price of the forward contract and …
How to use a binomial interest rate tree to find bond prices One method that we use to value bonds …
Defined-benefit plan Defined benefit plans are pension plans where the employer promises to make periodic payments to an employee after …
Time Series We can use regression models for time series as well. The two basic time series graphs are the …
Regression Model Assumptions Linear Regression Models operate under the following assumptions: A linear relationship exists between dependent and independent variables …