Adjusting discount rate?
I have a question about DCF Valuation. If you think a company will not be able to generate 100% of their expected revenue (if the management team says they will generate 1million per year for the next 10 years, but you think they will only have 0.9 million per year), you change the revenue on the top of the income statement. Would you adjust the discount rate as well to reflect the additional risk/uncertainties? (say, from 10% to 10.5%) Thanks!
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