How much is the industry discount rate at SANDALS for flight attendants?

Discount rate and valuation?

• About valuation in real life, what is the actual discount rate? I know the discount rate is the required return to investors and the interest rate of debt (WACC) But how is this paid out in real life? Dividend to the investors? Interest payments to banks? One should use the free cash flow and the interest has already been paid out to banks when calculating the free cash flow? What if you use the discounted dividend model : V = d/(r-g). How does the investor get paid in real life? Dividend right? why discount dividend? I understand that time value of money is very important, but that is only inflation and increase in prices. Discount rate is also risk, right? how is this in real life if the project goes smooth? Thanks for the help! Cheers!

• Answer:

  I have learned of discount rates, but I never really went into them. From what I know Discount rates are often offset by inflation. I'm quite certain discount rates are the rates offered to investors from principal shareholding. I would assume that there is a time of withdraw contract provided to provide reasonable time on returns. Also a bit off topic dividends are typically only good for large investments, often under 5% there have been higher but I've never met anyone who's gotten wealthier off of dividends. Again of course if your in Apple right now (which I'm certain no one is) 5% for a 600 dollar share can add up, but this is all under the assumption you have a ton of wealth. From current implication anyone with actual wealth will not invest and the stock market is directly correlated back to foreign markets including the Euro NYSE and the Saudi Arabian Unite Arabic Emirates. Typically the only people who invest also believe Ford Eco-Boost is a real competitive advantage. A pat the back, a cock in your mouth, and my boy tag-the-net (taglianetti) lights up a sign over their head that says I'm an investor now where's my yellow wife and my Dodge Caravan?