Explain why setting a higher discount rate is not a cure for upward-biased cash-flow forecasts.
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Explain why setting a higher discount rate is not a cure for upward-biased cash-flow forecasts.
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Related Book For 
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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