Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: Pirah Naman who wrote (131)	11/4/1997 6:51:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to 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?