Larry Sells Sweatshirts at Football Games $\begin{array}{cc}\text { Sweatshirts (units short) }&\text { Probability }\\0 & 0.5 \\100 & 0.3 \\200 & 0.2\end{array}$

question 7

Essay

Larry sells sweatshirts at football games. The quantity supplied to him is sometimes less than he ordered. The probability distribution below shows the probability of these shortages. $\begin{array}{cc}\text { Sweatshirts (units short) }&\text { Probability }\\0 & 0.5 \\100 & 0.3 \\200 & 0.2\end{array}$ Simulate the average number of shortages for 15 consecutive orders, using the following single digit random numbers: 1, 6, 8, 3, 4, 5, 7, 0, 3, 8, 9, 3, 2, 4, and 2.

Analyze the impact of earnings management on financial reporting and investment decisions.

Calculate intrinsic value of stocks using different valuation models including DDM, FCFE, and FCFF.

Recognize the significance of growth rates in dividends and free cash flow in valuing stocks.

Evaluate the appropriateness of discount rates such as WACC, required rate of return on equity, and risk-free rate in valuation models.

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Definitions:

Aphasia

A condition marked by the loss or impairment of the ability to speak, write, or understand language, typically as a result of brain damage.

Stereotypical Words

Language that reflects generalized and oversimplified beliefs or impressions about a particular group of people or things.

Spontaneous Speech

The natural flow of speaking without premeditation, reflecting the speaker's immediate thoughts or feelings.

Hallucinations

Sensory experiences or perceptions that have no basis in reality and occur without any external stimulus.