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Discount Rate—Explanation, Definition and Examples

Valutico

The discount rate effectively encapsulates the risk associated with an investment; riskier investments attract a higher discount rate. Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. That’s why it’s called a ‘discountedcash flow.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Valutico | May 7, 2024 Valuation is really important in finance. This guide talks about the main ways we figure out value during M&A deals, why they’re useful, and what challenges they bring. Some techniques include comparing companies in the market, estimating future cash flows, and assessing the value of tangible assets.

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M&A Terms Every Business Owner Should Know

Class VI Partner

Cash-on-Cash Return Cash-on-Cash Return is a term (sometimes also referred to as Return on Investment) used to describe the rate of return on a particular investment by comparing the actual cash generated by a company and distributed to an investor with the cash investment made by the investor.