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In valuation, we estimate cash flows forever (or at least for very long time periods). The right risk free rate to use in valuing a
In valuation, we estimate cash flows forever (or at least for very long time periods). The right risk free rate to use in valuing a company in US dollars would be a. A three-month Treasury bill rate (2.3%) b. A ten-year Treasury bond rate (2.7%) c. A thirty-year Treasury bond rate (3.2%) d. A TIPs (inflation-indexed treasury) rate (0.88%) e. None of the above
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