Which of the following would be a qualitative factor in asset valuation? A) The Food and Drug Administration has rejected the firm’s new patent application. B) The new CEO has a reputation for financial gimmickry. C) Earnings are down 4% in a quiet market.
A
B
B
It is B. I marked A after thinking that this will affect the stock price (as it often happens with pharma company), but schweser has its way to ask.
B this is a BS question. A to me sounds wrong because it is quantifiableand the question is asking for a qualitative reason.
Agree with niraj_a Its much easier to come up with a value on a potential patent, then back that value out for rejection than it is to come up with a risk premium for a CEO’s past trickery.
I vote for B - my vote should count more since I am on LIII 
j/k just got bored and decided to see what was up on the other threads. LIII sucks more than LII
Hey buddy, get out of here and stop mocking us! How’s the studying going man?
B
agree, pure and unadulterated BS question
Studying sucks. You? I am getting nervous as I am sure you guys are as well. Plus this dude name SeaIsland or something totally started it. He comes onto the LIII board and is like “hi my name is seamonkey…could you please tell me in your oh so infitessimal wisdom how hard LII really is?”