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#19
12-05-2005, 01:03 PM
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Re: BUD - Fools Duel
Discount rate is bond rate + risk. Bond rate is 6% and risk is 9% for BUD (9% is lowest). Newer companies get higher risk rates, so the other companies all have higher discount rates than BUD. Then all companies default to 12% after 10 years. This is the default discount rate for Quicken and I always take the default rates with this tool for discount rate.
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