Quote:
Originally Posted by longsuffering
I also think that the 10% discount is too high. I'd like to see it at 5% tops.
Maybe you remove franchise appreciation from the model in return?
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I can look at it, but I really disagree.
My work has 10% as the absolute line in the sand, and 15% a pretty recent memory for oil and gas capital.
These guys have huge investment opportunities in front of them with big returns, tying up their capital would need a pretty base return assumption or it's not worth it.
Remember this is the rate that future cash flow is discounted not a return on investment.