Ulrich Schwalke continues his work in valuing private companies, taking specific interest in transactions involving public companies buying private company targets. As he has seen in his work, private company discount rates are often biased because private firms typically have less access to debt capital.
While Schwalke has experience using CAPM for public companies, he has rarely used it for private firms, instead relying on the expanded CAPM or a build-up approach to estimate required return on equity. When using the expanded CAPM for a private company, JNK Corporation, Schwalke gathered beta estimates from publicly traded comparable companies. On a recent engagement, he found the average beta from public comparables of 1.20. The average debt ratio of the public comparables exceeded that of JNK, while tax rates were equal between the public comparables and JNK.
Continuing in his role, Schwalke completed many private company valuations for entire businesses. As a result, certain methods of calculating terminal values seemed to be more useful for his work than other methods.
Schwalke had initially struggled with applying discounts in private company valuation but became more comfortable with different estimation methods. In particular, he finds an option-based approach to quantifying the lack of marketability quite useful. In his recent work on valuing JNK, he estimated the value of three put options with three months until expiration on the most similar public comparable company to JNK. The public comparable was trading at a stock price of EUR 29.70. The three-month risk-free rate is 4%. The put option valuation results are summarized as follows:
JNK Put Option Exercise Prices and Values
请问为什么B不对，讲义里面也有提到因为limit debt access，私企的WACC会更高，那discount rate就应该更高啊？ 而A选项具体实在讲义里面那一部分提到了啊？
