10. A discount rate has 3 basic components: the market long term bond rate, the market premium for equity over the long-term bond rate, and: U.S. Treasury Bill rate Inflation rate The company's stock price and amount of equity Risks specific to what is to be received in the future 14. Often people think low margins as a percentage are caused by management not controlling expenses. This is sometimes true, but low margins as a percentage could also be telling management that the: Company's value proposition is good Company's value proposition is not-so-good Cost of equity is too high Company should add more debt to its capital structure