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Discount Rate

One task of a financial manager is to do research on the main competition to the firm you work for. Do some research using Yahoo Finance and other search engines on these two competitors, then write a two to three page paper answering the following question:

Is your reference company more or less risky to the point of view of investors than your two competitors?

My Reference Company: Haemonetics

Competitors: Gambro and Baxter

Phrased another way, this question is asking should the discount rate for your company's bonds be higher or lower. If your company is more risky than your competitors, then the discount rate should be higher. Take into account the risk of bankruptcy, default on bond payments, and other matters into your analysis for this paper.

NOTE: You DO NOT need to use complex mathematical formulas for this assignment. You just need to discuss the relative risk of your reference corporation compared to its competitors.

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One task of a financial manager is to do research on the main competition to the firm you work for. Do some research using Yahoo Finance and other search engines on these two competitors, then write a two to three page paper answering the ...

Solution Summary

This discusses the concept of Discount Rate by taking corporate examples

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