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### Discount Rate Definition - Investopedia

The discount rate can refer to either the interest rate that the Federal Reserve charges banks for short term loans or the rate used to discount future cash flows in discounted cash flow (DCF

Actived: Friday Jun 22, 2018

### Cost of Capital vs. Discount Rate: What's the Difference?

The cost of capital refers to the actual cost of financing business activity through either debt or equity capital. The discount rate is the interest rate used to determine the present value of

Actived: Wednesday May 27, 2015

### What You Should Know About the Discount Rate

The Discount Rate and Discounted Cash Flow Analysis. The discount rate is a crucial component of a discounted cash flow valuation. The discount rate can have a big impact on your valuation and there are many ways to think about the selection of discount rates. Hopefully this article has clarified and improved your thinking about the discount rate.

Actived: Thursday Dec 5, 2019

### How to Determine a Discount Rate – Vintage Value Investing

The maximum long-term capital gains rate in 2016 is 20%. Therefore, you need a 12.0% pre-tax return in order to beat the stock market after taxes. So, your discount rate – according to Buffett’s and Munger’s principles – should be 12.0%. Do you agree? Disagree? How do you determine a discount rate to use? Let’s hear it in the comments

Actived: Saturday Dec 7, 2019

### Discount rate financial definition of discount rate

Discount rate The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needs, and not a device to increase earnings. In context of NPV or PV

Actived: Thursday Dec 5, 2019

### Discount and Sale Price - Math Goodies

The rate of discount is usually given as a percent, but may also be given as a fraction. The phrases used for discounted items include, " off," "Save 50%," and "Get a 20% discount." Procedure: To calculate the discount, multiply the rate by the original price. To calculate the sale price, subtract the discount from original price.

Actived: Friday Dec 6, 2019

### Discount Rate Definition | Discount Rate Formula

The discount rate definition, also known as hurdle rate, is a general term for any rate used in finding the present value of a future cash flow. This article also shares the discount rate formula and works through a discount rate example

Actived: Saturday Dec 7, 2019

### Discount rate - Wikipedia

The annual effective discount rate, an alternative measure of interest rates to the standard Annual Percentage Rate; The (asset appropriate) rate used in calculating the discounted cash flow value of a traded investment or corporate finance "project". theoretical or observed rates at which private or public sector entities discount future payoffs

Actived: Wednesday Dec 4, 2019

### Discounted Cash Flow: What Discount Rate To Use? | Seeking

The discount rate is by how much you discount a cash flow in the future. For example, the value of \$1000 one year from now discounted at 10% is \$909.09. Discounted at 15% the value is \$869.57

Actived: Wednesday Mar 28, 2012