Problem: What's (in your opinion) discount rate for the following types of equities? How do you determine that rate?
a. A risk free equity (a Treasure Note- called risk free because if they can't pay, your money is worthless!)
b. A CD at a South America bank paying in their local currency
c. A stock in a company that has a secure stream of income from a long term contract customer.
d. A stock in a company that has an interesting business plan but no real operations as of yet (as NY Lotto says " A Dollar and a dream").