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Question
When estimating the terminal value of a venture using an equity valuation method, a perpetuity growth equation that uses the capitalization (cap) rate for discounting purposes is often applied. This cap rate is measured as the __________ rate __________ the perpetuity growth rate.
a. equity discount; minus
b. equity discount; plus
c. risk-free; plus
d. risk-free; minus
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Q:
When screening possible investments, a venture capital firm might issue a SLOR, which stands for:
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d. "senior letter of reference"