Question
Which of the following is the appropriate discount rate to be used when calculating NPV in the certainty equivalent approach? a. Risk-free rate b. Market
Which of the following is the appropriate discount rate to be used when calculating NPV in the certainty equivalent approach?
| a. | Risk-free rate | |
| b. | Market risk premium | |
| c. | Cost of equity | |
| d. | Cost of capital |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
