In valuation, we estimate cash flows forever (or atleast for very long time periods). The right risk

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In valuation, we estimate cash flows forever (or atleast for very long time periods). The right risk freerate to use in valuing a company in US dollars wouldbe

a.A three-month Treasury bill rate (0.5%)

b.A ten-year Treasury bond rate (2.5%)

c.A thirty-year Treasury bond rate (3.5%)

d.A TIPs (inflation-indexed treasury) rate (0.5%)

e.None of the above

What are we implicitly assuming about the US treasury whenwe use any of the treasury numbers?

Posted Date: Jun 05, 2024 09:03 PM

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In valuation, we estimate cash flows forever (or atleast for very long time periods). The right risk

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