You are on page 1of 2

Risk Free Rate of Return

24% Current Ghana Treasury Bond yield

Premium for Equity Investment

Risk premium for investing in a public com

Premium for small company size

Risk premium for investing in a small comp

Industry specific risk premium


Company Specific Risk Premium
Equity Discount Rate
Net Cash Flow Growth Rate

Capitalisation Rate

Company Specific Risk Premium

24% Sum of the Risk - free return plus the risk p


5% Long Term growth rate in subject business

19% Difference between the Equity Discount Ra

y Bond yield

ting in a public company

ting in a small company

eturn plus the risk premia above

in subject business net cash flow

e Equity Discount Rate and NCF Growth Rate Above

You might also like