When you need to borrow money, you usually go to a bank or a credit union. But when a bank needs to borrow money, where does it go? Thanks to the discount rate, they can go to the Federal Reserve for ...
In regulatory cost benefit analysis the discount rate translates future value to present terms. Regulatory costs, such as investments in pollution control equipment or redesigning nutrition labels, ...
Requiring that the value of discounted cash earnings is near the Net Asset Value explains why REITs are generally priced near NAV. It makes sense for the market to assign less value to future growth ...