powered by logo

Forums

Back

Cost of capital- illustration 17

Financial Management

How these discounts rates have been estimated?

20220804_183504.jpg

Sri Yoga Vishwa. P

Sri Yoga Vishwa. P

CA Final

2K+

04-Aug-22 18:47

443

Answers (1)

You may take any random estimates. But generally, to get an accurate value we take the first estimate same as the cost of equity % and then compute NPV, then if the NPV is positive we will take the next estimate higher than that. This is covered in detail in Time value of money.


Your Reply