Musings on Markets

JULY 31, 2025

At the start of July, I updated my estimates of equity risk premiums for countries, in an semiannual ritual that goes back almost three decades. If default risk seems like to provide too narrow a focus on countr risk, you can consider using country risk scores , which at least in principle, incorporate other components of country risk.

Risk Premium

Equidam

JUNE 30, 2025

From 2008 until 2022, most central banks lowered interest rates to 1% or below, creating what economists call the Zero Interest Rate Policy (ZIRP). Checklist Method Validation – Document achievement of specific risk-reduction milestones – Show progress on de-risking the business since your last funding 4.

Equity

Valutico

FEBRUARY 27, 2024

For central banks like the Federal Reserve, it helps control the economy. They set this rate to affect how much money moves through banks and influences short-term interest rates. We are going to focus on how discount rates are used in the context of investment, rather than in the context of central banks.

Discounted Cash Flow

Appraiser Newsroom

JUNE 4, 2024

Dr. Everett is the author of the children’s financial literacy thriller Toby Gold and the Secret Fortune, which incorporates such financial topics as saving, investing, banking, entrepreneurship, interest rates, return on investment, and net worth. Everett He holds a Ph.D. in Quantitative Economics from Tufts University. Petersburg, Russia.

Business Valuation

Equidam

APRIL 22, 2025

10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 23] Risk-Free Rate: Tied to government bond yields (e.g.,

Discounted Cash Flow