Get used to world without risk free rate - FT.com
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September 1, 2011 6:52 pm
Get used to world without risk free rate
By Gillian Tett
Earlier this week, I pointed out in a column that the cost of insuring the US
government against default in th
I. ESTIMATING DISCOUNT RATES
Discount rates matter, but not as much as you think they do!
Estimating Inputs: Discount Rates
While discount rates obviously matter in DCF valuation, they
dont matter as much as most analysts think they do
Country Risk Premiums
To estimate the equity risk premium for a country, I start with a mature market premium and add an additional cou
Use the look up table in the next worksheet, to look up the statistics for an individual country or region.
Step 1: Est
Moody's CDS Spread CDS Spread Country
Implied Premium (Method 1)
(Here you are given the $ dividend on the S&P in the prior year)
Enter the appropriate values in the 'Inputs' section below. Go to the 'Data' tab and select 'Analysis'.
Then select the 'Solver' add on. Solver shoul
You have been asked to estimate the cost of capital for Baklak Stbres, a firm that generates all of its
revenues in Thailand. You are supplied with the following” additional information:
> The average beta for specialty retailers in South East Asia is