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Chapter 4 Business Value Evaluation
Section 1 Calculation of discount rate
The discount rate for evaluating the company's technology value was calculated as
follows by applying the discount rate for unlisted medium- sized companies
corresponding to the Korean Standard Industrial Classification G47 industry ( re
tail business ) in the technology value evaluation practical guide published by the
17)
Ministry of Trade, Industry and Energy in 2017 .
< Table 4-1> Various coefficients related to discount rate calculation
( Unit : billion won , %)
division ratio note
Cost of debt capital 6.77%
cost of equity capital 8.09%
Equity capital composition ratio 54.85%
Technology commercialization ris
k premium 18) 2.22% Assuming
Risk premium of scale 19) 1.97%
Source : Ministry of Trade, Industry and Energy (December 2017), 「Technology Valuation Practical Guide」 , pp. 133-134 .
< Table 4-1> into the discount rate calculation formula, the discount rate for evaluati
ng the value of the company's technology can be calculated as follows .
discount rate
= WACC + Spread
= [( Cost of debt capital ) ☓ ( Ratio of debt capital )] + [( Cost of equity capital ) ☓
( Equity capital composition ratio )] + [ Technology commercialization risk premium
+( Scale risk Premium☓Equity composition ratio )]
17) Ministry of Trade, Industry and Energy (December 2017), 「Technology Valuation Practical Guide」 , pp. 133-134 .
18) Ministry of Trade, Industry and Energy (December 2017), 「Technology Valuation Practical Guide」 , p. 80 .
19) Kim Shin-pyo (2018.8.30.), 「Value Creation Management and Evaluation」 , pp. 119-120 . QR
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