We provide an arbitrage-free valuation of exhaustible resource firms through extending the Gibson and Schwartz (1990) model and also the Jamshidian and Fein (1990) solution to valuing an entire petroleum firm based on quoted oil futures. Our solutions are compared to accounting, traditional...

The accounts of a large retailer showed statistical evidence that shrinkage (stock loss) was being measured with serious error. As a result, profit itself in many departments was seriously in error. These errors tended to wash out over large areas of the business, but at local level, serious...