asked 230k views
4 votes
The discount rate includes ________ in the basic valuation model.

a. cash flows.
b. timing.
c. risk.
d. total value.

1 Answer

2 votes

Answer:

c. risk

Step-by-step explanation:

The discount rate usually stands for the opportunity cost of investing elsewhere or the cost of sourcing finance. therefore, it includes a risk component.

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User Hendrixski
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