Sunk cost fallacy is a phenomenon about the behavior of being irrational despite the obvious fact that the drawbacks of recovering a cost spent are outweighing the benefits. This bias is seen with many investors who invest in a stock with falling prices but yet do not sell the shares hoping that the share price might rise.
This is similar to a food lover who ordered an expensive dish that did not taste good enough, but ultimately, he had to eat it to obtain maximum value out of it even it could cause him stomach problem.
Mexican Motors’ market cap is 200 billion pesos. Next year’s free
Lohn Corporation is expected to pay the following dividends over the next
Use the following income statement and balance sheet for Jim’s Espresso:
You are looking at an investment that has an effective
Bowdeen Manufacturing intends to issue callable, perpetual bonds with annual coupon
Why is it that real options must have positive value?
Shadow Corp. has no debt but can borrow at 8 percent
Hanmi Group, a consumer electronics conglomerate, is reviewing its annual
Schwert Corp. shows the following information on its 2012 income statement
Aguilera Acoustics, Inc. (AAI), projects unit sales for
