Page 1 of 1
Suppose that Techinc consists of a perpetual cash flow of $15M USD that will arrive next year. Assume the risk free rate
Posted: Sun May 08, 2022 10:49 am
by answerhappygod
- Suppose That Techinc Consists Of A Perpetual Cash Flow Of 15m Usd That Will Arrive Next Year Assume The Risk Free Rate 1 (47.74 KiB) Viewed 30 times
Suppose that Techinc consists of a perpetual cash flow of $15M USD that will arrive next year. Assume the risk free rate is 2 percent. Apply the local CAPM to calculate the discount rate for D TechInc Corr(RiR) Local World E(RX% Techinc 1.00 SD (%) 16 0.75 0.70 2 Techinc Local Market World 1.00 13 10 0.85 1.00 12 8 10 percent 9 percent 8 percent