CALCULATION OF DISCOUNT RATE

Copyright K.Cuthbertson, D.Nitzsche . 17 . RESULTS (Fama-French 1996 table IV, Cochrane 1999) Here, ‘Value Stocks’ = ‘losers’ = ‘Reversal strategy’

Copyright K.Cuthbertson, D.Nitzsche . 17 . RESULTS (Fama-French 1996 table IV, Cochrane 1999) Here, ‘Value Stocks’ = ‘losers’ = ‘Reversal strategy’

http://www.staff.city.ac.uk/d.nitzsche/investmentdocuments/L06-MBA-Equity-CAPM.ppt

Ch 7: Project Analysis Under Risk

Risk can be accounted for by adjusting the NPV calculation discount rate: there are two methods ? either the WACC, or the CAPM

Risk can be accounted for by adjusting the NPV calculation discount rate: there are two methods ? either the WACC, or the CAPM

http://www.cambridge.org/resources/052181782X/845_Ch7Risk.ppt

Calculating Discounts

School district calculation: Calculate the E-rate discount for each individual school in the school district; Calculate the weighted average discount

School district calculation: Calculate the E-rate discount for each individual school in the school district; Calculate the weighted average discount

http://www.universalservice.org/_res/documents/sl/ppt/2008-training/fall-training-2008/Calculating%2520Discounts.ppt

An Introduction to the International Financial Management

Cash flows for two businesses in different currencies and the valuation of the overall business. Calculation of the discount rate for each business.

Cash flows for two businesses in different currencies and the valuation of the overall business. Calculation of the discount rate for each business.

http://www.people.hbs.edu/mdesai/courseoutlinenov2004.ppt

Financial Management 9/e

Conceptually, what is the appropriate discount rate to apply to the . target Terminal value = = = $221.0 million. Discount Rate Calculation

Conceptually, what is the appropriate discount rate to apply to the . target Terminal value = = = $221.0 million. Discount Rate Calculation

http://classweb.gmu.edu/chylton/tecm615/tecm615ppt/session8mergers.ppt

Asset Retirement Obligations

Uncertainties in the amount and timing are incorporated into the fair value calculation; The entity’s credit standing is reflected in the discount rate used

Uncertainties in the amount and timing are incorporated into the fair value calculation; The entity’s credit standing is reflected in the discount rate used

http://www.cbe.uidaho.edu/Acct592/CourseMaterials/FASB%2520Update/FASB%2520143,%2520144,%2520147.ppt

Risk, Return, and Discount Rates

How must the discount rate change in our standard NPV calculation if the cash flows are not riskless? This is more easily answered from the “other side.”

How must the discount rate change in our standard NPV calculation if the cash flows are not riskless? This is more easily answered from the “other side.”

http://leeds-faculty.colorado.edu/zender/CEDIR/Session2-notes.ppt

Hurdle rates for Firms

We can use a basic dividend discount model (DDM) to estimate the implied risk The required rate of return for bondholders of a particular firm is a function

We can use a basic dividend discount model (DDM) to estimate the implied risk The required rate of return for bondholders of a particular firm is a function

http://classes.bus.oregonstate.edu/ba440/PowerPoint/ch7.ppt

Week 9

This rate is used to price the bond issue (.i.e, the discount rate in the PV calculation) Determine the discount rate to compute the present value of the

This rate is used to price the bond issue (.i.e, the discount rate in the PV calculation) Determine the discount rate to compute the present value of the

http://www.cgu.edu/include/Week_9_F06.ppt

Lecture 5 Project Analysis Discounted Cash Flow Analysis

At a 10% discount rate, is this a good investment? (Ignore taxes) Net present value calculation -300,000 + PMT(50,000, 10%, 20)

At a 10% discount rate, is this a good investment? (Ignore taxes) Net present value calculation -300,000 + PMT(50,000, 10%, 20)

http://www.cba.uh.edu/singer/FINA6335/L5.ppt

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