How did they determine what factors were similar? How did they determine low risk, fast growth?
It looks to me like 6% isn’t all that fast and increasing leverage leads to higher risk…any ideas? The answer doesn’t really explain, it just states the answer….作者: YAhmed 时间: 2013-4-6 04:03
The answer compares Powell’s assumptions to the table. In the sentence right above the table it states he assumes fast growth and moderate risk, which matches both Firms 2 and 3. Firm 3 is selected since the market conditions were normal.作者: morebeans 时间: 2013-4-6 04:07
