In the Compressed Adjusted Present Value Model, the Appropriate Discount

question 12

True/False

In the compressed adjusted present value model, the appropriate discount rate for the tax shield is the unlevered cost of equity.

---

Definitions:

Moral Reasoning

The process by which individuals make decisions about what is right and wrong based on personal, societal, and ethical criteria.

Prejudice

An unjustified or incorrect attitude (usually negative) towards an individual based solely on the individual's membership in a social group.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Implicit Association Test

A psychological test designed to measure the strength of a person's automatic associations between mental representations of objects in memory.