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Discount Rate—Explanation, Definition and Examples

Valutico

To refine the selection of the discount rate, it’s important to draw on inputs from credible sources regarding economic, industry and company specific risk factors. Beta’s Role in Expected Return: The beta is multiplied by the market risk premium to calculate the additional return required for the stock’s specific risk.

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Mythical Adverse Effect

Reynolds Holding

The material adverse effect (“MAE”) definition in mergers and acquisitions agreements is one of the most intensely negotiated, litigated, and studied contract provisions ever. Against this inexorable trend, I argue in a forthcoming article that these endemic efforts to customize MAE definitions are in fact inefficient and counterproductive.

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Ropes & Gray Discusses FinCEN Proposal to Extend Anti-Money Laundering Requirements

Reynolds Holding

Currently, the definition of “financial institution” encompasses several categories of financial businesses, including banks, broker-dealers, and mutual funds. However, the definition does not cover RIAs or ERAs. RIAs and ERAs) to the definition of “financial institution.”

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Addressing Emerging Risk With Agile Auditing

Audit Board

Now we start the audit with specific risks in scope, and the audit is over when those risks and controls have been adequately tested. Our agile approach includes a firm “definition of done,” so once that threshold is reached, we can move on to auditing the next high-risk area.

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What is the Capital Asset Pricing Model (CAPM)?

Andrew Stolz

Definition of Capital Asset Pricing Model. It helps an investor understand what to expect to earn in relation to the risk-free rate and the market return. CAPM assumes that the minimum a rational investor would earn is the risk-free rate by buying the risk-free asset. How Do You Calculate the Capital Asset Pricing Model?

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Delaware Puts the Conduct of Business Covenant on Center Stage in COVID-Related M&A Dispute

Cooley M&A

November 30, 2020) is the first Delaware decision to analyze an MAE definition and conduct of business covenant in the context of COVID-19. In this case, the definition did not include a specific exception for changes resulting from a pandemic, but did include an exception for “natural disasters or calamities.” Key Takeaways.

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How to Find a Technology Services Firm to Buy: I Can’t Find the “Right Fit” to Acquire

IT Valuations

The “right fit” is a deeply personal definition. It’s specific to the cultures of your tech firm and the one you’re searching for. It’s specific to the people who live and work inside both of these excellent firms. But it isn’t just that, It is also about customer care, your core values, and philosophy of business.