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Use the DCF model. Say a company has: total assets = 120 equity = 40 β unlevered = 0.75
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Consider two identical light clocks, designed as explained in lecture. Bob has one, and Alice takes the other on her spaceship and flies by Bob at speed V. Bob observes Alice’s clock. What is the relationship between the duration of one tick on Bob’s clock and the duration of one tick on Alice’s clock, according to Bob (where γ represents the Lorentz factor)? (Tip: Think about the light clock diagram and the value of the Lorentz factor.)
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