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What Was the Average Annual Rate of Return on Long-Term

question 71

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What was the average annual rate of return on long-term government bonds (30-Year Treasury Bonds) during the period 1984 to 2008?


Definitions:

Creditors

People or organizations that provide loans or credit to others with the anticipation of receiving payment back later on.

NPVGO

Net Present Value of Growth Opportunities; a valuation method that calculates the present value of investment opportunities a company is expected to undertake in the future.

Above Average P/E Multiple

A valuation metric indicating that a company's current share price is higher relative to its per-share earnings than the industry or overall market average.

Risk-adjusted Equity Cost

A method of determining the cost of equity capital that incorporates the risk associated with the equity investment.

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