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Understanding the Company-Specific Risk Premium: A Guide for Attorneys

Gross Mendelsohn

Understanding risk factors is essential in determining how a business will be valued. Let’s consider what your business-owning clients need to know about company-specific risks and how they come into play when it’s time for a business valuation.

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Risk Premiums: A Look at CSRP

BVR

Is anything “company-specific” per se? Company-specific risk is not an ideal name for this risk. All firms face company-specific risks, many of which are somewhat similar across industries and companies. For example, how many firms have you valued that had to deal with the risk of customer concentration?

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Discount Rate—Explanation, Definition and Examples

Valutico

To refine the selection of the discount rate, it’s important to draw on inputs from credible sources regarding economic, industry and company specific risk factors. Beta’s Role in Expected Return: The beta is multiplied by the market risk premium to calculate the additional return required for the stock’s specific risk.

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PARAMETERS UPDATE P5.6

Equidam

You can refer to the table at this link to see how they will change for your industry specifically. 2 | Discount rate components used in the two DCF methods Most of the parameters determining the discount rate have been updated to reflect the most recent market situation in terms of systemic and industry-specific risk.

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PARAMETERS UPDATE P5.5

Equidam

You can refer to the table at this link to see how they will change for your country specifically. Most of the parameters determining the discount rate have been updated to reflect the most recent market situation in terms of systemic and industry-specific risk. 2 | Discount rate components used in the two DCF methods.

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Bottoms-Up Audit Planning: Risk-Based Auditing From Planning to Scoping

Audit Board

In traditional planning, the risk assessment is used to determine high-risk entities. The auditors are left to figure out the specific risks during their walkthroughs to start the audit.

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PARAMETERS UPDATE P5.4

Equidam

You can refer to the table at this link to see how they will change for your industry specifically. Most of the parameters determining the discount rate have been updated to reflect the most recent market situation in terms of systemic and industry-specific risk. 3 | Discount rate components used in the two DCF methods.

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