breaking into wallstreet

Question 1

opportunity cost

Answer 1

the 8.2 to 10% we used last time is called the Discount Rate

it matters becuase it lets us calculate the company’s present value, what its future cash flows are worth today this in the intrinsic value

once we have instrinc value we can contrast that to present value
know discount rate compare that to instsrisc value and need to understand discount rate to make investment decisions

different ways of making discount rate
to investors - a higher risk higher potential returns for higher discount rate
for lower discount rates = lower risk but also lower potential returns