Which of the potential discount rates should never be used

Assignment Help Financial Accounting
Reference no: EM132635059

POTENTIAL DISCOUNT RATES .

Expected Market Rate of Return 15% .

WACC 10.25% . Cost of Debt 7.50% .

Remunerative Rate 15% .

Accumulative Rate 6.25% .

Actual Rate of Return (TWRR) 14.75% .

IRR 14.95%

Cost of Equity 13% .

ROE 24.35%

Question 1: which of these potential discount rates should never be used?

Question 2: which of the two potential equity discount rates do you consider to be better and why?

Question 3: base on question 2, identify a circumstance where the other equity discount rate could be used?

Question 4: of the non-equity discount rates, which do you consider to be the two with the widest application?

Reference no: EM132635059

Questions Cloud

How does the medium impact what the viewer experiences : Are they the same medium? How does the medium impact what the viewer experiences? How do the formal elements of design compare to one another?
Record the transactions in a two -column journal provided : Record the transactions in a two -column journal provided. Bought from A & G Company parlor equipment costing P20,000 on credit.
What is the market''s estimate of the one-year treasury : What is the market's estimate of the one-year Treasury rate one year from now?
What is the firm debt ratio : The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization
Which of the potential discount rates should never be used : Which of the potential discount rates should never be used? Which of the two potential equity discount rates do you consider to be better and why?
Find free cash flow-vasudevan inc : Vasudevan Inc. recently reported operating income of $6.35 million, depreciation of $1.20 million, and had a tax rate of 40%.
Find per-share value of van buren to harrison corporation : What is the per-share value of Van Buren to Harrison Corporation? Do not round intermediate calculations.
Estimate requirement for additional life insurance : Estimate their requirement for additional life insurance using the income method and the expense method.
How much of the dividend goes to preferred and how much goes : In 2013 the company declares cash dividends of $45,000. How much of the dividend goes to preferred? How much goes to common?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd