Hi,
From Chapter 17 Page 22, regarding the margin in the discount rate,
"The company will now make less profit than it requires if i is sufficiently low that the return on capital is less than the required rate of return."
Could someone please provide further explanation on the above sentence please.
From Chapter 17 Page 22, regarding the margin in the discount rate,
"The company will now make less profit than it requires if i is sufficiently low that the return on capital is less than the required rate of return."
Could someone please provide further explanation on the above sentence please.