January 2016 Data Update 2: Interest Rates, Exchange Rates and Currencies
aswathdamodaran.substack.com
In both corporate finance and valuation, interest rates and exchange rates play a big role, the former because they form the basis for estimating required returns on risky investments, and the latter, since they affect your earnings and cash flows. That said, the biggest mistakes that we make in finance often come from trying to forecast one or both variables, implicitly or explicitly, when making corporate finance or investment decisions.
January 2016 Data Update 2: Interest Rates, Exchange Rates and Currencies
January 2016 Data Update 2: Interest Rates…
January 2016 Data Update 2: Interest Rates, Exchange Rates and Currencies
In both corporate finance and valuation, interest rates and exchange rates play a big role, the former because they form the basis for estimating required returns on risky investments, and the latter, since they affect your earnings and cash flows. That said, the biggest mistakes that we make in finance often come from trying to forecast one or both variables, implicitly or explicitly, when making corporate finance or investment decisions.