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RATE COMPONENT Liquidity premium Risk-free rate Advisory premium Market risk premium Hubris projection premium RETURN COMPONENT 5% 6% 9% 7.5% 15% a. Investment risk premium?

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RATE COMPONENT Liquidity premium Risk-free rate Advisory premium Market risk premium Hubris projection premium RETURN COMPONENT 5% 6% 9% 7.5% 15% a. Investment risk premium? b. What is the cost of equity? c. What is the discount rate used by VentureBanc? RATE COMPONENT Liquidity premium Risk-free rate Advisory premium Market risk premium Hubris projection premium RETURN COMPONENT 5% 6% 9% 7.5% 15% a. Investment risk premium? b. What is the cost of equity? c. What is the discount rate used by VentureBanc

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