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Value-neutral scenario ( in Tables 3.1 and 3.2): This is the most obvious scenario in the world of perfect and complete markets. Since all risk-management actions are free of charge, the cash flows in the numerator of Equation (2.1) are unaffected. Likewise, all risk-management actions aimed at specific risks will not change the denominator of Equation (2.1). Thus, managing specific risks will not create value neither on the firm level nor for the individual investor. Value-destroying scenario ( in Tables 3.1 and 3.2): As soon as the firm spends time and money on eliminating firm-specific risks, the cash flows in the numerator of Equation (2.1) are reduced. Because these actions as in scenario have no impact on the denominator, managing specific risk may decrease the value of the firm. Since individual investors could have eliminated specific risk themselves at no cost by portfolio diversification, they will not appreciate a firm s effort to do so at a cost. Scenarios and assume that there is no positive feedback from eliminating firm-specific risks, that is, there is no increase in expected cash flows from existing projects, future investment decisions, or the optimal capital structure (and hence a positive effect on the discount rate).67 Thus, a riskmanagement instrument that works on specific risk does not provide a lower discount rate for firms whose owners hold well-diversified portfolios, and hence can destroy value, if it comes at a cost.68 Let us now consider a firm that eliminates systematic risk on behalf of its investors [dimension (2). in Tables 3.1 and 3.2]. There are two possible scenarios:

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Another way to foster detachment and disidenti cation with urges and craving is to have clients use self-monitoring procedures to keep track of these experiences. The craving diary is a technique used in a number of RPT programs to gain information and to help cope with craving. The client is asked to keep track of the internal and external cues that stimulated a craving, his/her mood, the strength of the craving, how long it lasted, coping skills used, and how successful or unsuccessful these coping strategies were.

34 / Share-Based Payments (IFRS 2)

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Notes*** Assets Noncurrent assets Investments in Group undertakings Current assets Trade and other receivables Total assets Liabilities Current liabilities Amounts owed to Group undertakings Current tax liabilities Trade and other payables Nonequity B shares Total liabilities Net assets Equity Called up share capital equity Called up share capital nonequity Share premium account Capital redemption reserve Merger reserve Retained earnings Total equity C6

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password lying around. You can operate a clean desk policy so that nothing can be overlooked in a pile of papers in plain sight. Colleagues and I studied the benefits that can be obtained by training users [815]. While writing this book, I could not find any account of experiments on this that would hold water by the standards of applied psychology (i.e., randomized controlled trials with big enough groups for the results to be statistically significant). The closest I found was a study of the recall rates, forgetting rates, and guessing rates of various types of password [146]; this is valuable, but doesn t tell us the actual (as opposed to likely) effects of giving users various kinds of advice. We therefore selected three groups of about a hundred volunteers from our first-year science students.

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