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Discount Rate

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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June 2, 2019 at 3:23 pm #518410
aidenlim
Member
- Topics: 3
- Replies: 0
Hi Sir,
Dec 2018 (Q3)
Why the discount rate need to minus 4% risk free rate?
But,
June 2014 (Q2 (a)) do not need to minus risk free rate?
June 3, 2019 at 7:41 am #518477
John Moffat
Keymaster
- Topics: 57
- Replies: 54806
In December 2018 you are given the cost of equity.
In June 2014 you are given the market premium (which is already after subtracting the risk free rate).
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