You are considering an investment into Company XYZ and need to determine the company's value and the appropriate investment amount. You have been provided with historical financial statements for the past three years in order to build a forecast model. Key assumptions to use include: 

Tax Rate 27.50% 

EBITDA Exit Multiple 10.0x 

Equity Risk Premium 8.5% 

Interest Rate 5.5% 

What is the risk free rate? the discount rate and perpetual growth rate?

Answer rating: 100% (QA)

The riskfree rate refers to the return on an investment with zero risk typically represented by the ... View the full answer