For evaluating risky investments, understanding the term structure of discount rates is critical. Discount rates account for the riskiness of an investment, the time value of the money invested, and the opportunity cost of not investing in something else with those funds. For evaluating risky investments, understanding the term structure of discount rates is critical. Discount rates account for the riskiness of an investment, the time value of the money invested, and the opportunity cost of not investing in something else with those funds. Economics & Business Phys.org – latest science and technology news stories
A new model enables investors to evaluate equity terms
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