BREAK A SWEAT
When contribution margin just covers fixed costs.
What is cash break-even?
The asset class with the lowest volatility.
What are US Treasury Bills?
The method of finding RE that uses dividend data.
What is the Dividend Growth Model?
What is contribution margin?
A market in which security prices reflect all available information.
What is an efficient market?
When contribution margin just covers depreciation.
What is accounting break-even?
The asset class which is considered to carry the risk-free rate of return.
What are US Treasury Bills?
Method of finding RE that uses β.
What is CAPM or SML?
Risk that errors in estimating cash flows will result in incorrect investment decisions.
What is forecasting risk?
The idea that actual markets are efficient, for all practical purposes.
What is the Efficient Market Hypothesis?
When contribution margin just covers the required rate of return.
What is financial break-even?
What are small company stocks?
Method of finding RD that uses accounting information.
What is implied Cost of Debt?
The scenario that uses the lowest price and quantity estimates and the highest cost estimates.
What is the worst case scenario?
The form of market efficiency in which prices reflect all information, even private insider information.
What is strong form?
What OCF equals, at cash break-even.
What is zero?
The criteria that sorts stocks into two asset classes.
What is company size?
Name of the formula for finding RPS.
What is the perpetuity formula?
The scenario that uses the most likely estimates for all variables.
What is the base case scenario?
The form of market efficiency in which prices reflect all public information, but not insider information.
What is semistrong?
What OCF equals, at accounting break-even.
What is depreciation?
The lowest volatility asset class issued by private issuers.
What are corporate bonds?
The part of the WACC which must take into account taxes.
What is RD?
The type of analysis where only one variable is changed at a time.
What is sensitivity analysis?
The form of market efficiency in which prices reflect all market trading information like historical prices.
What is weak form?