ryangosling

Mention the two measures that are used for representing Discount Rates.

Discount rates show the importance of cash in business matters. Please explain the quantities used for measuring discount rates in a project.

Add a comment

0%

3 replies

sabir-ali

The particular annual efficient bank discount is the annual awareness divided because of the investment capital as well as which curiosity

Add a comment

0%
satinder

The interest charge that an qualified deposit establishment is definitely priced to borrow shortsighted-expression monetary resource straight from any Government Reserve Bank

Add a comment

0%
architay

Two Measures of Discount Rates:
Cost of Equity: This is the rate of return required by equity investors on an investment. It will incorporate a premium for equity risk –the greater the risk, the greater the premium.
Cost of capital: This is a composite cost of all of the capital invested in an asset or business. It will be a weighted average of the cost of equity and the after-tax cost of borrowing.

Source: http://in.docsity.com/en-docs/Valuation_-_Investment_Management_-_Lecture_Slides_

Add a comment

0%