I am working on a project where I need to calculate a risk-adjusted discount rate for a sole proprietorship. This individual does consulting engagements and makes a high six-figure revenue on an annual basis. My first instinct was to use the modified CAPM and get a size premium. Does that make sense? Any ideas or suggestions would be highly appreciated.
Finding a risk-adjusted discount rate for a sole proprietorship
byu/opposity ininvesting
Posted by opposity