What does it mean that discount rates come from the capital, Financial Management

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What does it mean that discount rates come from the capital

1. What does it mean that "discount rates come from the capital markets"?

2. Why is it more difficult to determine discount rates to empoly in valuing assets traded in private markets compared to public markets?

3. Outline the three approaches discussed in section11.2 to determine the appropriate discount rate or opportunity cost of capital in property valuation. highlight the pros and cons of each?

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Financial Management: What does it mean that discount rates come from the capital

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