Question: Question 261 ptsDamodaran highlights several methods for estimating the equity risk premium. One method is the implied equity risk premium, which uses current market prices
Question 261 ptsDamodaran highlights several methods for estimating the equity risk premium. One method is the implied equity risk premium, which uses current market prices and expected future cash flows. What is a key challenge in using the implied equity risk premium method?It requires accurate estimates of future cash flows and growth rates, which can be uncertain.it asumes that the risk-free rate is comtant over thre.It ises nol account for changes in investornistivertion
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