Fundamental Differences of the Discount Rate

Mária Illés (vgtilles@uni-miskolc.hu)
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Mária Illés: University of Miskolc

Theory Methodology Practice (TMP), 2002, vol. 1, issue 01, 15-19

Abstract: The paper points out the contradiction, which hides behind the yield requirements interpreted by the ‘shareholder aspect’ and the opportunity cost resting on microeconomic bases. The economic literature was consistent for a long time in the question that the time-value of invested money is independent from the capital-structure. The investment- efficiency calculations are not influenced by the decision concerned with the capital-structure. As the ‘shareholder aspect’ came to the fore, we can meet more often efficiency-calculations, where different yield requirements concerned with the equity capital and credits are charged, for the equity capital profitability requirements containing also the risk-premium requirements (as a rate independent of the capital-structure), for the credits only the returns of interest. Considering, that the prices of products realising on the competitive market do not depend on the capital-structure, the yield-requirement drafted on the principle of opportunity cost must be also independent of that.

Date: 2002
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