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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

 

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 three-month Treasury bill rate (0.5%) A ten-year Treasury bond rate (2.5%) b. A thirty-year Treasury bond rate (3.5%) d. A TIPS (inflation-indexed treasury) rate (0.5%) None of the above a. C. e. What are we implicitly assuming about the US treasury when we use any of the treasury numbers?

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