ABSTRACT: Previous analytical work has shown that a firm's cash recovery rate (the ratio of cash recovery during a period to gross investments outstanding during the period) is related to the internal rate of return of firm projects in the event that the firm reinvests all of its cash flows. This paper extends the previous analytical work by establishing a link between a firm's cash recovery rate and the internal rate of return of firm projects in circumstances when the firm does not reinvest all of its cash flows. Additionally, this paper applies the extended model to a group of firms in order to obtain estimates of their internal rates of return. Work of this kind would seem to be of particular interest to economic researchers who are interested in theoretically defensible empirical measures of firm profitability.

ABSTRACT: The currently prescribed method of dealing with potentially dilutive securities in earnings per share calculations is reconsidered in light of the more recent development of equilibrium pricing models for options and convertible securities. This new treatment of an old problem offers a theoretical structure founded upon recent developments in finance. It is shown that fairly precise statements about the timing of voluntary conversion or exercise of potentially dilutive securities are often possible. Moreover, assessments of the probabilities of future stock prices reaching levels which would allow conversion or exercise can be derived from a widely used stochastic model of security price behavior. Some implications for policy are discussed.

Women spend about 50 percent more on average on medical care than men, although men who are hospitalized stay 50 percent longer than women. This study empirically tests several hypotheses that may account for these differences. Results show that these differences are explained by the fact that men may be more able to substitute home for market medical care. Men may also have a lower return to the prior use of medical care because men are more likely to suffer from causes against which medical care is not effective. Potential differences in the value of time do not account for the differences in utilization of medical care.

ABSTRACT Conventional tests for a risk premium in the price of forward exchange use the subsequently realized spot rate as a proxy for prior expectations. Use of this proxy creates a serious errors‐in‐variables problem which makes it difficult to reject the null hypothesis of zero risk premium. Use of a better proxy for expectations indicates the presence of a risk premium in the forward exchange rate of all countries analyzed.

T. C. Langetieg, M. C. Findlay, L. F. J. da Motts, Multiperiod Pension Plans and ERISA, The Journal of Financial and Quantitative Analysis, Vol. 17, No. 4, Proceedings of the 17th Annual Conference of the Western Finance Association, June 16-19, 1982, Portland, Oregon (Nov., 1982), pp. 603-631