Free Cash Flow as Value Criterion Message Board

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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: Pirah Naman who wrote (131)	11/4/1997 6:51:00 AM
From: Reginald Middleton	Read Replies (1) of 253

> "that individual's return requirement" should reflect the oppurtunity cost of investing in that particular vehicle in lieu of investing in the risk free instrument. <No. It should reflect the investor's other options, period. Those who invest in non-publicly traded instruments will understadn this immediately> These mean the same thing. > This is derived via a mathematical equation ... <Seeking a false precision.> If math leads to a false preceision, why do you rely on numbers? They will lead you to a false precision. <You are using a different defintion of discount rate.> To my knowledge, there is only one accepted definition of discount rate when valuing assets. What is the defintion you are using?

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