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

To: Reginald Middleton who wrote (138)	11/4/1997 3:24:00 PM
From: Pirah Naman	Read Replies (1) \| Respond to of 253

> Well I am going to go on no farther. Not to dissuade you from that position, but taken from: rcmfinancial.com 1) The discounted future earnings method... requires ...the investor's desired rate of return. 2) Each year's income and the residual value are then discounted...by the desired rate of return. 3) Any significant adjustment in the discount rate to adjust for risk will impact the discount process and distort the value estimate. For the record, the above came from "Part II Corporate Valuation Methodologies Utilized" and I did not find anything in that section with which I disagreed.