Question
You've noticed that analysts at your company use a Market Equity Risk Premium of 5.5% when valuing firms for investment. You believe that 4.72% is
You've noticed that analysts at your company use a Market Equity Risk Premium of 5.5% when valuing firms for investment. You believe that 4.72% is more appropriate.Explain the impact of using 5.5% instead of 4.72% on their valuations. Would the impact be the same for high growth & mature companies? Explain.
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Equity Asset Valuation
Authors: Jerald E Pinto, CFA Institute
3rd Edition
1119850517, 978-1119850519
