Cost of capital basics. Defining cost of capital -- Introduction to cost of capital applications : valuation and project selection -- Net cash flow : the preferred measure of return -- Discounting versus capitalizing -- Relationship between risk and the cost of capital -- Cost components of a company's capital structure -- Weighted average cost of capital -- Estimating the cost of equity capital. Build-up models -- Capital asset pricing model -- Proper use of betas -- Size effect -- DCF method of estimating cost of capital -- Using Ibbotson Associates cost of capital data -- Arbitrage pricing model -- Other topics related to cost of capital. Minority versus control implications of cost of capital data -- Handling the discount for lack of marketability -- How cost of capital relates to the excess earnings -- Common errors in estimation and use of cost of capital -- Cost of capital in the courts -- Cost of capital in ad valorem taxation -- Capital budgeting and reasibility studies -- Central role of cost of capital in economic value added.
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SUMMARY OR ABSTRACT
Text of Note
An authoritative text on cost of capital for both the nonprofessional and the valuation expert - now revised and expanded. In endeavoring to practice sound corporate finance, there is perhaps nothing so critical, nor slippery, as cost of capital estimation. The second edition of Cost of Capital: Estimation and Applications combines a state-of-the-art treatise on cost of capital estimation with an accessible introduction for the nonprofessional.
ACQUISITION INFORMATION NOTE
Source for Acquisition/Subscription Address
OverDrive, Inc.
OTHER EDITION IN ANOTHER MEDIUM
Title
Cost of capital.
International Standard Book Number
0471224014
TOPICAL NAME USED AS SUBJECT
Business enterprises-- Valuation-- United States.
Capital investments-- United States.
BUSINESS & ECONOMICS-- Investments & Securities-- General.