Initial Public Offering - IPO



Initial Public Offering - IPO

Answers

Variation in Discount rates and Equities

Extreme scenarios has been presented by the risk free equity definition due to the fact that U.S. treasury notes are free if risk since it is predictable that U.S. treasury notes are free from default risk. For this reason it is the securest equity which backed by U.S. Treasury. Looking at this type of investment, the preference from my side would be given to the return that is lower than 10%.

South American countries are linked with certain risk. This risk is currency risk which is directly ...