In a Survey You Conduct, 80% of Respondents Say They

question 15

True/False

In a survey you conduct, 80% of respondents say they have never been the victim of a crime while the rest state they have been the victim of a crime 10-20 times. This distribution is likely to be negatively skewed.

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Definitions:

Discount Rate

The discount rate applied in the process of discounted cash flow (DCF) analysis to calculate the current value of anticipated future cash flows.

Abnormal Earnings Approach

A valuation method that estimates a company's value based on the prediction of future abnormal earnings, defined as earnings in excess of a normal return on investment.

Free Cash Flow Approach

A valuation method focusing on the cash flows that a company can generate after accounting for capital expenditures required to maintain or expand the asset base.

Return On Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently a company uses its assets to generate profit.