Keywords
discount rates, size premium, geometric averages, equity risk, liquidity premium
Abstract
In recent court cases, a number of technical issues have arisen in determining appropriate discount rates for use in the discounted cash flow approach to valuation. This article examines three issues, reviews the literature about the issues, and summarizes the key considerations.
Original Publication Citation
H.B. Heaton. "On the Use of Size Premiums, Arithmetic or Geometric Average Returns, and Liquidity Premiums in Determining Discount Rates," Journal of Property Tax Assessment and Administration, Volume 4, #4 (Fall, 27), pp5-12.
BYU ScholarsArchive Citation
Heaton, Hal B., "On the Use of Size Premiums, Arithmetic or Geometric Average Returns, and Liquidity Premiums in Determining Discount Rates" (2007). Faculty Publications. 955.
https://scholarsarchive.byu.edu/facpub/955
Document Type
Peer-Reviewed Article
Publication Date
2007-09-01
Permanent URL
http://hdl.lib.byu.edu/1877/2704
Publisher
University of Ulster
Language
English
College
Marriott School of Management
Department
Finance
Copyright Status
© 2007 University of Ulster.
Copyright Use Information
http://lib.byu.edu/about/copyright/