Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 9.1, Problem 2CC
Summary Introduction

To find: The discount rate used to discount the stock’s future cash flows.

Introduction

The discount rate is the rate of interest charged to commercial banks and depository institutions for a loan received. The discount rate helps in obtaining the future cash flows of the present value.

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