On the use of size premiums, arithmetic or geometric average returns, and liquidity premiums in determining discount rates

Authors

Hal Heaton, Brigham Young University

Abstract

In recent court cases, a number of technical issues have arisen in determining appropriate discount rates for use in the discounted cash flow approach to valuation. This article examines three issues, reviews the literature about the issues, and summarizes the key considerations.

First Page

5

Last Page

12

Keywords

Income approach to value

Recommended Citation

Heaton, H. (2007). On the use of size premiums, arithmetic or geometric average returns, and liquidity premiums in determining discount rates. Journal of Property Tax Assessment & Administration, 4(4), 5-12. Retrieved from https://researchexchange.iaao.org/jptaa/vol4/iss4/1