| OCR Text |
Show 103 the return of on investmnt required of investors for the use their money. For give general a three ways to market approach, Cohen Zinbargl and supply guidance in determining discount a rate. The first 11 method--return has equity on been typically percent to 12 percent, and investors should be able expect this return to 9 about 3 percent, or 8 percent about percent. The second method described market. Although discount rate, stated Zinbarg yield writing, on was it does give its main value fluctuates market the less to in response that the the is related is in to interest rates. indicating why 4 percent to which at 5 percent, again. rates recent of jumps that time we have interest which have not past decline. Since and may Using from this 4 percent lJerome B. Analysis and Irwin, Inc., 1967 serve to Cohen and seen illustrate 8 percent, the the of which would have 10 percent cate widely fluctuating the recent rate twice time been characteristic analysis, if to to the a the discount rate should be about put the discount rate in the 8 percent gory the bond apparent estimate for an highest grade bonds, about to of the market of Aaa bonds discount rate would Cohen and Edward D. Zinbarg, Investment (Homewood, Illinois: Richard D. Manafement , pp. 231-32. |
