Fundamental Differences of the Discount Rate
AbstractThe paper points out the contradiction, which hides behind the yield requirements interpreted by the ‘shareholder aspect’ and the opportunity cost resting on microeconomic bases. The economic literature was consistent for a long time in the question that the time-value of invested money is independent from the capital-structure. The investment- efficiency calculations are not influenced by the decision concerned with the capital-structure. As the ‘shareholder aspect’ came to the fore, we can meet more often efficiency-calculations, where different yield requirements concerned with the equity capital and credits are charged, for the equity capital profitability requirements containing also the risk-premium requirements (as a rate independent of the capital-structure), for the credits only the returns of interest. Considering, that the prices of products realising on the competitive market do not depend on the capital-structure, the yield-requirement drafted on the principle of opportunity cost must be also independent of that.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Faculty of Economics, University of Miskolc in its journal Theory Methodology Practice (TMP).
Volume (Year): 1 (2002)
Issue (Month): 01 ()
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.