IT’S THE RATE OF PROFIT, STUPID

ERRATA: I have changed a sentence in the article – from the balance sheet it is then revalued based on the expected discounted cash flow to the balance sheet it is sometimes revalued based on the expected discounted cash flow. Revaluing assets on the balance sheet is not an automatic process as implied in the first sentences. ‘Mark to market‘ as this process is known is at the discretion of the board of directors.