Assume that the signal of the cable equipment degrades at a continuous time rate of 1.0% per year. In order to solve this, think about how a common stock might lose some of its value according to a schedule that investors will know about. Now adjust your model in part a) to account for this change. Describe what variables you are changing in the model and how you are changing them?

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To adjust the model for the degradation of the cable equipment signal at a continuous rate of 10 per ... View the full answer