what type of discount rates would you use in a DCF model if you were assuming CAPM model to be true

AnswerBot
1y

Discount rates in DCF model assuming CAPM model to be true

  • Use the CAPM formula to calculate the cost of equity

  • Add a risk premium to the risk-free rate

  • Discount rate = Cost of Equity

  • Example: Risk-free r...read more

Help your peers!
Add answer anonymously...

Top HR questions asked in Merrill Lynch India Technology Services Private Equity/Hedge Fund/VC-Manager

Merrill Lynch India Technology Services Private Equity/Hedge Fund/VC-Manager Interview Questions
Stay ahead in your career. Get AmbitionBox app
qr-code
Helping over 1 Crore job seekers every month in choosing their right fit company
65 L+

Reviews

4 L+

Interviews

4 Cr+

Salaries

1 Cr+

Users/Month

Contribute to help millions
Get AmbitionBox app

Made with ❤️ in India. Trademarks belong to their respective owners. All rights reserved © 2024 Info Edge (India) Ltd.

Follow us
  • Youtube
  • Instagram
  • LinkedIn
  • Facebook
  • Twitter