What are some of the reasons that return on U.S. Treasury bills should not be used as

Question:

What are some of the reasons that return on U.S. Treasury bills should not be used as the discount rate in valuation of a business?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Entrepreneurial Financial Management An Applied Approach

ISBN: 9781000650488

5th Edition

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

See More Books

Question Posted: May 12, 2024 08:13 AM

See More Questions

QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...
Image transcription text Module 5 Discussion A' Instructions: This discussion will be completed in two parts, and will give you an opportunity to reect upon this week's content and to interact with...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
Maria is opposed to the idea of same-sex marriage. In a recent conversation in the school cafeteria, Maria argues, "If homosexuals are allowed to marry, then why not allow polygamy or other kinds of...
Suppose the random variable T is the length of life of an object (possibly the lifetime of an electrical component or of a subject given a particular treatment). The hazard function hr(t) associated...
(a) Use the particle-in-the-box model for the helium atom and treat the electron as a particle in a one-dimensional box of length 100. pm to predict the wavelength of radiation emitted when the...
Identify someone who owns a timeshare through your family connection, or neighbors and friends. Talk to the person and find out why he/she purchased the timeshare, and identify his/her usage patterns.
(a) Calculate the amount of life insurance that Marcia needs based on the information given. Use the Run the Numbers worksheet on page 353 or the Garman/Forgue companion website. Assume a 3percent...
Concord Wyatt is unable to reconcile the bank balance at January 31. Concord's reconciliation is as follows, $3,860.20 540.00 Cash balance per bank Add: NSF check Less: Bank service charge Adjusted...
Your firms free cash flow per year is as follows: Year 1 = $$120,000$ Year 2 = $$140,000$ Year 3 = $$150,000$ Year 4 = $$160,000$ Year 5 = $$170,000$ The cost of capital is 20 percent. a....
Redo problem 5 under the assumption that the tax rate is 40 percent, and the cost basis of the business is only $$10,000$. What will the net proceeds be after the payment of the debt and the taxes?...
Describe the analysis that is applied to a data model in order to place it in first normal form (1NF).
Northfield Manufacturing has two operating divisions in a semiautonomous organizational structure. Americas Division, based in the United States, produces a specialized memory chip that is an input...
T 174 6. Cs has a half-life of 30.8 s and the number of nuclei present is 3.787 1016 nuclei. 55' Determine: a. Number of nuclei present 2.6 minutes later b. The activity of 17 CS at the time in a. c....
The parallel sides of the trapezoidal lot measure 160 m and 240 m are 40 m apart Find the distance of the dividing line from the 160m line parallel to the 2 sides that will divide the trapezoid into...
Peninsula Community Health Services of Alaska had just completed of a merger of two organizations. The original Peninsula Community Health center was a community health center only, but the CHC had...
Compensation Approach: Imagine that the HR department of your chosen organization from below is going to design a compensation approach for the job that is aligned with reinforcement, expectancy, and...
The Deluxe Corporation has just signed a 168-month lease on an asset with a 19-year life. The minimum lease payments are $1,300 per month ($15,600 per year) and are to be discounted back to the...
Rowland Textile Inc. manufactures two products: sweatshirts and T-shirts. The manufacturing process involves two activities: cutting and sewing. Expected overhead costs and cost drivers are as...
CIS fixed operating costs are $5,000. It variable costs are $30 and the sales price is $40. What is the operating break-even quantity? 0 71 O 721 250 500
Managerial accounting provides information to internal users as they request it. This can be immediate and as frequent as demanded True or False True False
June Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2021. Power Drive has...

What are some of the reasons that return on U.S. Treasury bills should not be used as

Question:

Step by Step Answer:

Using the return on US Treasury bills as the discount rate in the valuation of a business may not be appropriate due to several reasons 1 Risk Differe...View the full answer

Entrepreneurial Financial Management An Applied Approach

Students also viewed these Business questions