AVR, which has the same sign as the Net Present Value. This makes (i) AIR a more reliable tool for valuation and decision …This paper generalizes Makeham's formula, allowing for varying interest rates and for a non-flat structure of valuation … rates. An average interest rate (AIR) is introduced, as well as an average valuation rate (AVR), which exist and are unique …

to valuation with a simple but new approach to estimating the Market or Equity Risk Premium (ERP) that produces very good …

illustrations: Valuation of a firm using DCF Model with time-varying discount rates and Past Valuation data of S&P 500 using DDM …

disequilibrium values, is at odds with arbitrage theory, and that the corresponding CAPM-based NPV rule is meaningless even in the …, leaves decision makers open to arbitrage losses, because it is an (admittedly interesting) reframing of the security market … line and (as surprising as it might be) the use of the SML for project valuation is incompatible with the no-arbitrage …

ambiguities, because it induces the existence of four profitable indexes, two of which are nonadditive.The decision process is …

implicit in the Risk Premium Valuation Model (Hassett 2010) that the equity risk premium is a function of risk free rates …