标题: FCFE discounted on real or nominal [打印本页] 作者: mamuka12 时间: 2011-7-13 13:38 标题: FCFE discounted on real or nominal
Is FCFE discounted on real or nominal discount and growth rate?
Thank you作者: wxs1986 时间: 2011-7-13 13:38
I thought it depends on wheather the cash flows are real or nominal, if they are real then use the real rate, nominal use the nominal rate作者: llxx 时间: 2011-7-13 13:38
The question does not mention anything about real or nominal figures. It simply says "Selected Financial Statement Information" by which I assume NI is nominal, and so FCFE. They however discounted the figures on real terms. Grateful for any help!作者: iteracom 时间: 2011-7-13 13:38
Give us what question you're looking at... pedpenny is correct, if the figures are in nominal terms, discount at the nominal rate. If the figures are in real terms, discount at the real rate. If it's the income statement and NI, that's definitely in nominal terms.作者: WarrenB1 时间: 2011-7-13 13:38
pedpenny Wrote:
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> I thought it depends on wheather the cash flows
> are real or nominal, if they are real then use the
> real rate, nominal use the nominal rate