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Cost of Capital and Efficient Capital Markets
Cost of Capital and Efficient Capital Markets

more of something often means less of something else
more of something often means less of something else

... Personalized Portfolio, you will notice that our strategies appear on a trident, with low cost tracking to a benchmark at the center, and with mutually-exclusive axes radiating from there for outperformance, protection, and tax minimization. So what does this picture really say? We contend that the ...
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... Who’s Eligible: Any collector in the 28% tax bracket or higher; some small-business stock shareholders. Net long-term gains from collectibles (stamps, coins, baseball cards and the like) are subject to a 28% maximum federal rate rather than the usual 20%. To the extent a long-term collectibles gain ...
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... What about investing the personal retirement accounts (PRAs) in government bonds? That depends critically on whether those bonds would otherwise have been sold to the public – crowding out private investment – or whether they are newly created bonds that represent increases in government spending. ...
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... FALSE. According to the UIRP (1+it) = (1+i*t)Et/Eet+1, the left hand side represents the  return in terms of domestic currency from holding domestic bonds and the right  hand side represents the expected return in terms of domestic currency from holding  foreign bonds. That is, the return from holdi ...
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Capital Budgeting Processes And Techniques

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PS1 Chapters 1

... e. not enough information to determine 26. Other things held constant, which of the following would NOT affect a firm’s Return on Equity? a. accounts receivable are collected and deposited in the firm's checking account b. fixed assets are sold for cash at a price greater than their book value c. lo ...
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Internal rate of return

The internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow rate of return (DCFROR). In the context of savings and loans, the IRR is also called the effective interest rate. The term internal refers to the fact that its calculation does not incorporate environmental factors (e.g., the interest rate or inflation).
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