Item 1 - “Business” requires a description of the company’s business, including its main products and services, what subsidiaries it owns, and what markets it operates in. This section may also include information about recent events, competition the company faces, regulations that apply to it, labor issues, special operating costs, or seasonal factors. This is a good place to start to understand how the company operates.
Item 1A - “Risk Factors” includes information about the most significant risks that apply to the company or to its securities. Companies generally list the risk factors in order of their importance. In practice, this section focuses on the risks themselves, not how the company addresses those risks. Some risks may be true for the entire economy, some may apply only to the company’s industry sector or geographic region, and some may be unique to the company.
Item 1B - “Unresolved Staff Comments” requires the company to explain certain comments it has received from the SEC staff on previously filed reports that have not been resolved after an extended period of time. Check here to see whether the SEC has raised any questions about the company’s statements that have not been resolved.
Item 2 - “Properties” includes information about the company’s significant properties, such as principal plants, mines and other materially important physical properties.
Item 3 - “Legal Proceedings” requires the company to include information about significant pending lawsuits or other legal proceedings, other than ordinary litigation.
Item 4 - This item has no required information, but is reserved by the SEC for future rulemaking.
Drawback of mailed marketing survey.
Sometimes the client has no reply or may reply but will take to much time like 2 weeks or more. Mail sometimes are not 100% sure to be received by the the recipient sometimes it is stored directly to spam.
Answer:
the discount rate for this option implies to be 6.26%
Explanation:
From the given information; we are to determine the discount rate for the cash option.
Let r represent the discount rate and represent the cash option
The the discount rate for the cash option is related to the sum of all the Present Value of the cash flows together with the discount rate.
r = discount rate = ???
for the next 29 years.
Mathematically;
If discount rate (r) = 1%; we have:
If the discount rate r= 2% ;
If the discount rate r= 4% ;
If the discount rate r = 6%
PV = 123.5396349 ≠ 120.504 (but that was so close)
If the discount rate r = 6.26%
PV = 120.4722 million which is approximately equal to $120.504 million
Thus ,the discount rate for this option implies to be 6.26%
It’s the second one,about not being able to see someone’s work-ethic