Article Review (3-4 pg, 4 pg max) Article Review Cite an article at beginning of review (author, date, title, journal publ., etc). The article must be from an academic peer reviewed journal. If...

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Article Review (3-4 pg, 4 pg max)
Article Review
Cite an article at beginning of review (author, date, title, journal publ., etc). The article must be from an academic peer reviewed journal. If obtained via internal resources, provide explicit instructions on how to obtain the article via Internet. Avoid using marginal literature that may be found on the internet. The use of marginal sources will impact the credibility and significance of paper, impacting grade.
Article must address issue related to the methods and/or analysis of financial quantitative or a qualitative problem from a peer reviewed journal.
Review must have 4 clearly identified sections,
1. Complete article citation (author, date article, publication title, etc.) and how/where article was accessed.
2. Clearly & succinctly summarize what the main issue of article is, and key pts. regarding that issue. Communicate a clear, simple, straight-forward message
3. Clearly state how the article relates to the succeeding in business with Microsoft Excel 2010, A Problem Solving approach
4. Your reaction or observations regarding content.
Reviews must have above required sections clearly labeled in review, the clarity, efficiency, and effectiveness of communication of main issues; relevance to course; use of financial terms; level of thought communicated



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Article Review (3-4 pg, 4 pg max) Article Review Cite an article at beginning of review (author, date, title, journal publ., etc). The article must be from an academic peer reviewed journal. If obtained via internal resources, provide explicit instructions on how to obtain the article via Internet. Avoid using marginal literature that may be found on the internet. The use of marginal sources will impact the credibility and significance of paper, impacting grade. Article must address issue related to the methods and/or analysis of financial quantitative or a qualitative problem from a peer reviewed journal. Review must have 4 clearly identified sections, Complete article citation (author, date article, publication title, etc.) and how/where article was accessed. Clearly & succinctly summarize what the main issue of article is, and key pts. regarding that issue. Communicate a clear, simple, straight-forward message Clearly state how the article relates to the succeeding in business with Microsoft Excel 2010, A Problem Solving approach Your reaction or observations regarding content. Reviews must have above required sections clearly labeled in review, the clarity, efficiency, and effectiveness of communication of main issues; relevance to course; use of financial terms; level of thought communicated



Answered Same DayDec 22, 2021

Answer To: Article Review (3-4 pg, 4 pg max) Article Review Cite an article at beginning of review (author,...

Robert answered on Dec 22 2021
132 Votes
“Why do Hurdle Rates differ from the Cost of Funds?”
Ciaran Driver(Tanaka Business School, Imperial College London, U.K) , Paul Temple
(Department of Economics, University of Surrey,
UK)
Cambridge Journal of Economics
First published online May 7, 2009
Accessed through: Surrey Research Insight Open Access (via Google scholar)
(This is a pre-copy-editing, author-produced PDF of an article accepted for publication in
Cambridge Journal of Economics following peer review. The definitive publisher-authenticated
version Cambridge Journal of Economics 2010 34: 501-523 is available online at Cambridge
Journal of Economics journal.)
The article talks about possible explanations for investment appraisal by companies. The
companies are bifurcated into those that prioritize shareholder value, while on the other hand
are the companies that stand to gain competitive advantage. The companies that have a
shareholder-oriented business are underlined by strong financial discipline and those with
managerial autonomy show lax financial discipline. The paper expects to see this reflection in
investment appraisal and more specifically in difference between discount rates and hurdle
rates.
The authors use PIMS (Profit Impact of Marketing Strategy) database of large industrial firms,
mostly based in US. The database defines discount rate as and capital charge rate as follows:
Discount rate: “The discount rate is used in computing the present value of a stream of future
income or cash flow. You can think of it also as your opportunity cost of capital (i.e. your
company‟s cost of debt and equity)”
Capital Charge Rate: “In calculating discounted net income what capital-charge rate should be
applied to any additional investment that would be required to pursue the various strategy
alternatives available to your business? The capital...
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