I agree Nib. RI is equity charge. EP/EVA is Wacc related
CFAi says otherwise in the Corp Fin book, which btw contain several useful item sets.
I am not saying its wrong, but that seems weird.
Fraud Triangle. … Identify (Incentive , opportunity and Attitude/Rationale) to detect fraud
I’ll say it! 3L, you’re wrong!! JK babe. which page?
page 89 - Q35 EDIT: I didn’t read it write…sorry guys…long day.
the fraud triangle i’ve got down cold- learned it the 1st time back in march/april when I went to DC to run a little 5k charity race. clearly got bombed the night before so running hurt. i now affectionately remember the fraud triangle as I PUKE AND RUN OFTEN… aka incentive/pressure/attitude/rationalizaton/opportunity. you can all think of me when a question comes up on saturday. i hope we get a whole shennanigans vignette. nothing would make me happier. i love the sketchy sh*t.
OPA like the greek say it … Opportunity - Pressure - Attitude -> Fraud Triangle http://www.greekfestnola.com/speakgreek/opa.html
don’t forget about taxation (imputed, 2ble, split rate)
Double = corp rate + (1-corp)(personal) Split = corp div + (1-corp div)(personal) Imputation = whatever you personal income tax is
damn nib…you are GOOD!!