Discount Rate Assignment
Prepare a discount rate using the build-up method and Capital Asset Pricing Model method for an engineering firm as of 12/31/17. Assume the company has revenue of approximately $10 million
. Please note: the Duff & Phelps resource tends to be one year behind as it collects data for a given year and then reports it in the next. As a result,
you see 2016 data reported in the 2017 book. As of 12/31/17, you would only have the 2017 book available (based on the known or knowable valuation concept).