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Let's assume the current stock price of AMD is $90/share. You conduct extensive analysis and due diligence on AMD, and determine the stock should be
Let's assume the current stock price of AMD is $90/share. You conduct extensive analysis and due diligence on AMD, and determine the stock should be worth $225/share in 5 years.
1) if you apply a discount rate of 15%, are you willing to buy shares today at $90?
2) If you apply a discount rate of 20%, are you willing to buy shares today at $90?
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