Risk-free rate - Quick question

Hi everyone,

Quick question, I am currently calculating a WACC for a DCF case-study, and I need to input the current risk-free rate of return for the US market.

From what I see on the internet, the 3-month T-bill rate is now down to 0.11%. Should I use 0.11% as the risk-free rate? From finance textbooks, I used to think that the risk-free rate was typically around 2-3%, not as low as 0.11%.

Am I missing something here? Any help would be greatly appreciated!

2 Comments
 

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