文稿大三上金融建模ch6or.pptxVIP

1 Chapter 6: Choosing a Discount Rate Main Topics: What is the appropriate discount rate? Calculation of the WACC Calculation of cost of equity, using The Gordon Dividend Model Note: We will have more in-depth cover of the Free Cash Flow materials in Chapter 7 2 Importance of Discount Rate Recall: Whether we are using the NPV or the IRR criterion, the discount serves as a benchmark We need to be sure that our discount rate is appropriate for the risk-level of our prospective projects What will happen if we use a discount rate that is too high or two low? The commonly used benchmark: the weight