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Fundamentals of Corporate Finance, 4/c/e
Fundamentals of Corporate Finance, 4/e
Stephen A. Ross, Massachusetts Institute of Technology
Randolph W. Westerfield, University of Southern California
Bradford D. Jordan, University of Kentucky
Gordon S. Roberts, York University
Project Analysis and Evaluation

Internet Application Questions



1

The Motley Fool site provides a discussion of operating leverage in the context of new economy firms characterized by very large developmental costs and virtually zero variable costs. Do you think this model will work for old economy industries? What assumptions do you need to make in answering such questions?
 
2

Sometimes investments are associated with catastrophic risk. It is important for managers to control this risk within reasonable limits. Value at Risk provides an easily understood and measured statistic to quantify this risk. The following sites provide discussions of Value at Risk.
  1. http://www.gloriamundi.org/var/FAQ.html
  2. VaR Measure
Under what conditions will VaR and standard deviation provide identical information?
 




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