R0 Calculation
Is the formula for the equity calculation missing a multiplier for % ownership of C/S on the total value of common stock? Based on R0 example 1, it appears like it may be
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Is the formula for the equity calculation missing a multiplier for % ownership of C/S on the total value of common stock? Based on R0 example 1, it appears like it may be
Comments
According to Odomirok p251, the formula is correct and R0 example 1 is in error. We'll adjust the wiki for this. Thanks.
Correction. Both the formula and the example are correct. "Value of common stock as recorded by reporting entity" is another way of saying "value of affiliated insurer's common stock owned by the reporting entity." For this, you have to multiply the second term in the example by %ownership as well.
Hi. Are there any mini-quiz calculation problems for R0? Like the ones the randomly generated data? Thanks.
We will try working up some such problems and let you know.