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Data Normalization and Standardization

When approaching data for modeling, some standard procedures should be used to prepare the data for modeling: First the data should be filtered, and...

The Federal Reserve

To determine whether the Federal Reserve adds value to the United States, or not, one would need to compare statistics from before and after...

The Top Line Versus the Bottom Line

In business, the sales force is considered the revenue center, while all other functional areas within the company are viewed as expense (i.e., cost centers).  This...

The Leverage of DSO, DPO, DOI, and the CCC

When optimizing a company’s cash conversion cycle (CCC), it is important to understand both the value and the cost in doing so. First the value: ...

Gordon Dividend Discount Model (DDM) versus FCFE Valuation Models

Two popular models for valuing equity are the DDM and FCFE models.  The DDM is sometimes referred to the Gordon constant growth model, because...