Discount Rates, Helpful in Determining Future net Worth
There are many indicators used in determining a company's net worth. These same indicators are used if a company's future earning is ever in question. Discount rates are used to fill the void of such future earnings that may have been lost by circumstances out of the company's control.
The Discount rate reflects the rate of the payee rather than the one being paid. The strength of the company determines the size of the discount rate. If you have a weak company one can expect a high discount rate. …
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