Fair Value

1. (Exhibit 1: Total Product) Between points A and B the marginal product of labor is:

Retention is a reflection of a customer’s willingness to remain with a particular company’s service or products and is useful to measure customer loyalty. The relationship

You must be able to know the resale value of a towing truck as this is an important and a foremost process. Whether you are buying new or used vehicle, you need to figure out the value of the resale value of the truck. You begin by determining the residual value of the truck that must be analyzed in order to known and determine its present value and future value that it may hold. The resale value of the truck is calculated accordingly.

Mortensen’s estimates are used for capital budgeting, financial accounting, performance assessments, stock repurchase decisions. Some of the financial goals are to oversee the growth, and value creation. The calculations may be affected by the amount of risk must be averaged for the projects when calculating the WACC, adjustments may also occur if the project risk is different from the company's overall risk.

In the case, there was a significant decrease in the volume and activity for the instrument because of (1) significant widening of the bid-ask spreads in the markets and the widening continued throughout Q4 2012 (2) a significant decrease in the volume of trades comparing with historical level in Q4 (3) no recent transactions. According to 820-10-35-54-c, it was reasonable to determine that market is not active. Because the adjustments were based on management’s assumption, FFC didn’t used level 1 inputs in the income approach valuation technique (present value technique). In addition, significant adjustment inputs includes credit adjustment (level 3

RMS continues to focus on Altisource’s valuation process and in particular, Altisource’s setting of a reasonable list price when the assets are initially listed. This has and continues to be our biggest area of concern as it relates to the project, as extended timelines to market and liquidate the property increase carrying costs and ultimately increase losses. As a result, RMS has increased the frequency that we review listed assets to identify those that may have a list price that is too high.

At the bottom of this report it states, “We believe that these appraisal values are reasonable” (Pany, Auditor's Report, 2010). This does not belong here because they do not want your opinion in this area.

* Dimson and Marsh (1994) have expressed concern that many UK companies may be using excessively high discount rates to appraise investments and, as a result, these companies are in danger of underinvesting. In the USA it has also been alleged that firms use discount rates to evaluate investment projects that are higher than their estimated cost of capital (Porter, 1992).

Coral’s second major product, ChurnAlert is working on to dominate the market space for customer retention products. ChurnAlert’s primary features are the fact that it is a near real-time profiler, with information taken directly from the switch. However there are two major competitors in the churn space.

Most of the companies use a model named Predictable Model that helps them to know as to which customer is likely to stay and which ones are probably one timers. The model is created after careful study and scrutiny of the sales records and the result is a score that provides the company with an idea in regards to the solvency of the customers. This leads to the companies focusing more on the customers that are not regular and entice them to stay.

There are two primary modelling approaches, they are recency, frequency and monetary (RFM) model and the customer life value model (CLV). The RFM model focusses on three key metrics; how recently a customer has purchased, how often they purchase and how much money they spend. On the other hand, the CLV model attempts to predict the amount of money a customer will spend with the company from present day till the time the business relationship is terminated. Gupta et al (2006) indicate that the main limitation to RFM models is that they use a scoring system and do not provide a specific dollar value. However, there are successful cases where an RFM model was

Retention rate. The retention rate is the probability that an individual customer will remain loyal to the vendor for the next period, provided that the customer has bought from that vendor on each previous purchase before that. It can be inferred by using determinants of loyalty, like customer satisfaction, switching barrier, variety-seeking behaviour and attractiveness of alternatives. It is assumed that a customer who stops dealing with the vendor is totally lost.

And build customer loyalty. When customers keep on to purchase goods and services within a establish time periods is known as customer retention. It is the strategic process to retain or keep the existing customers and not letting them to defect or diverge to other competitors for business, but this can be only possible when there is a quality relationship between vendors and customers (Molapo et al., 2011).

Stowe, J. D., Robinson, T.R., Pinto, J. E. et Henry , Equity asset valuation, Second Edition, 2010, CFA Institute Investment Series

Schefter, 2000). Therefore, enterprises strive to increase their market share by maximizing customer retention (Tsoukatos & Rand,