How does the mark to market accounting system lead to more


1. Leisure Vacations is an unlevered firm with aftertax net income of $57,980, a cost of capital of 12.3 percent, and a tax rate of 35 percent. What is the value of this firm?

2. What was the Fed’s initial response the crisis (before Bear Stearns)?

3. How does the mark to market accounting system lead to more bubbles and crashes?

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Financial Management: How does the mark to market accounting system lead to more
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