Should One Assume the Discount Rate to Be One of the Risk Factors?

The Monte Carlo simulation is the ultimate solution for considering nearly all possible scenarios in presumably any discounted cash flow valuation. This paper argues that a discount rate expresses an investor’s current requirement and should be respectively perceived as a parameter only. The consequ...

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Bibliographic Details
Main Author: Jan Kaczmarzyk
Format: Article
Language:English
Published: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu 2024-01-01
Series:Nauki o Finansach
Online Access:https://journals.ue.wroc.pl/fins/article/view/1258
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