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Discount Rate Myth 2: It's all about D in a DCF
Published 2 weeks, 2 days ago
Description
In this session, the second of five on discount rate myths, I look at the undue attention that both academics and practitioners pay to discount rates in DCF (as opposed to cash flows) and explore why this might be. I also look at the cross sectional distribution of costs of capital across all companies (in the US and globally) and argue that the range across companies is a tight one.
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/DiscountRateMyth2.pdf
Blog Post: http://aswathdamodaran.blogspot.com/2016/11/myth-42-it-all-about-d-in-dcf.html
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