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Old 10-08-2006, 04:00 AM   #12 (permalink)
user_name
Within my grasp!
 
Join Date: Aug 2006
Posts: 455
user_name is on the way!
The Master's grades will not be in time, but the senior year's grades will be, which is what the OP lacks if he applies now. There's also a risk associated with going straight for a PhD: one may flunk out if one is ill-prepared. Indeed one purpose (among many others) of doing a Master's degree is to reduce this risk.

I completely agree with you that a Master's degree is not the right thing for everybody. It just happens that many people on this board seem to be in a situation where having an MA might turn things around.

PS: I don't remember everything I learnt in corporate finance, but what other discount rate were you talking about? I was treating the stream of his future annual salaries as a perpetuity whose present value is salary divided by interest rate. Of course this is a simplifying assumption because he's not going to live "perpetually", but then again the possible increases in his salary (which were assumed away) could probably act as a counterbalance.
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