Suppose an appropriate discount rate including inflation is 20% and the analyst uses this rate to discount
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Suppose an appropriate discount rate including inflation is 20% and the analyst uses this rate to discount estimated future returns that include inflation-based growth in revenue and cost. If estimated future returns are based on current dollars, and the inflation assumption is 4% annually, then the discount rate of ____ should be used to discount the current dollar future returns.
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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