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  "documentTitle": "Bear Stearns | Investment Banking Pitch Book | 36 slides",
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  "notes": "Part of a Bear Stearns DCF Primer document.",
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      "text": "Use the country's long-term Treasury bond to approximate the risk-free rate.\nUse one of the sources listed on page 13 for comparable company betas.\nCalculate the market risk premium using the same definition of the market that was used to calculate beta and the same long-term Treasury bond that was used to estimate the risk-free rate.\nThe local stock market may be used as the market proxy if a long enough time series exists and it is sufficiently liquid or, alternatively, it may be appropriate to use a global index. The international market risk premium data provided on page 20 is based on returns on Morgan Stanley Capital International (MSCI) country-specific equity indices against long-term income returns on each country's long-term government bond.\nA point of reference to estimate discount rates is to refer to venture capitalists' required rates of return on similar investments.",
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      "text": "It may be appropriate to use other valuation methodologies in conjunction with DCF to value foreign companies since US betas are not applicable in foreign markets, and DCF values in foreign currencies may not be directly convertible to values in US dollars.",
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      "text": "Calculate a foreign currency discount rate which reflects local political risk, foreign investment risk and currency exchange risk.",
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      "text": "Discounted Cash Flow Methodology",
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