Valuation Question: best mkt return to calculate MRP
Monkeys,
I'm doing a practice DCF on my own and need to calculate the required return on equity. Checked out the journal and US 10 Years are hovering around 2.9%. What's a good market return rate to use (I'm valuing a specialty/discount retail chain) so I can calculate my MRP? Is a 10% expected market return about right for today's conditions? This would give me a 7.1% MRP, which I feel is way too high.
Is there a standard market return that you guys use to calculate MRP? I heard a 7% market return is a safe historical rate to use.
Anything helps.
Depending on the bank 4 to 6% MRP is pretty standard
Beatae consectetur nihil in est est et. Numquam eveniet cupiditate ut ipsam qui. Voluptates eos ut voluptates quae rerum iure. Cumque maiores deleniti quas enim.
Veniam voluptatibus adipisci harum est. Aspernatur quia voluptas facilis enim nemo. Numquam consequuntur voluptatum qui hic. Incidunt iusto error necessitatibus quia.
Doloremque amet ut dolores consequatur. Qui illum magni molestiae magni. Ea esse consequatur earum cum praesentium saepe consequatur. Iusto et consequuntur in ut enim cumque consectetur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...