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Great job, Kit!

Slightly off topic...

Your mention of discount rates had me wondering about your reaction after reading Chapter 6 as to what rate to use for cost of equity. This choice of rate would seem to generate the same questions (and religious fervor) people have when choosing the discount rate for a discounted cash flow.

I read IETC around this time last year, and since then have done a number of enterprising income statements. In some cases, a difference of 1-2% in the choice of a rate to calculate cost of equity can equal an entire year's accrual (or more) for advertising or R&D. There are enough approximations in the enterprising statement to make this task of doing one...well...enterprising!

Bill





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