Cost of capital: applications and examples

Cost of capital: applications and examples

Pratt, Shannon P.
Grabowski, Roger J.

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Now in a Fourth Edition, Cost of Capital brings together the issues in the cost of capital computation in a way that melds timely advice with serious debate about the best practices in the area. New chapters are included on reconciling various forms of the income, and on cost of capital for companies assessed as unitary businesses. Addressing the most controversial issues and problems in estimating the cost of capital, this definitive text is an indispensable reference tool for professional valuation practitioners, attorneys, judges, investment bankers, CFOs, and CPAs INDICE: About the Authors. Foreword. Preface. Acknowledgments. Notation System and Abbreviations Used in This Book. Part 1 Cost of Capital Basics. Chapter 1 Defining Cost of Capital. Chapter 2 Introduction to Cost of Capital Applications: Valuation and Project Selection. Chapter 3 Net Cash Flow: Preferred Measure of Economic Income. Chapter 4 Discounting versus Capitalizing. Chapter 5 Relationship between Risk and the Cost of Capital. Chapter 6 Cost Componentsof a Business's Capital Structure. Part 2 Estimating the Cost of Equity Capital and the Overall Cost of Capital. Chapter 7 Build-up Method. Chapter 8 Capital Asset Pricing Model. Chapter 9 Equity Risk Premium. Appendix 9A Realized Risk Premium (ex Post) Approach. Chapter 10 Beta: Differing Definitions and Estimates. Chapter 11 Unlevering and Levering Equity Betas. Chapter 12 Criticism of CAPM and Beta versus Other Risk Measures. Chapter 13 Size Effect. Chapter 14Criticisms of the Size Effect. Appendix 14A Other Data Issues Regarding the Size Effect. Chapter 15 Company-Specific Risk. Chapter 16 Distressed Businesses. Chapter 17 Other Methods of Estimating the Cost of Equity Capital. Chapter 18 Weighted Average Cost of Capital. Chapter 19 Global Cost of Capital Models. Chapter 20 Using Morningstar Cost of Capital Data Part 3 Corporate Finance Officers: Using Cost of Capital Data. Chapter 21 Capital Budgeting and Feasibility Studies. Chapter 22 Cost of Capital for Divisions and Reporting Units. Chapter 23 Cost of Capital for Fair Value Reporting of Intangible Assets. Chapter 24 Cost of Capital in Evaluating Mergers and Acquisitions. Chapter 25 Cost of Capital in Transfer Pricing. Chapter 26 Central Role of Cost of Capital in Economic Value Added. Part 4 Other Cost of Capital Considerations. Chapter 27 Handling Discounts for Lack of Marketability and Liquidity for Minority Interests in Operating Businesses. Chapter 28 The Private Company Discount for OperatingBusinesses. Chapter 29 Cost of Capital of Interests in Pass-Through Entities.Chapter 30 Relationship between Risk and Returns in Venture Capital and Private Equity Investments. Chapter 31 Minority versus Control Implications of Costof Capital Data. Chapter 32 How Cost of Capital Relates to the Excess Earnings Method of Valuation. Chapter 33 Adjusting the Discount Rate to Alternative Economic Measures. Chapter 34 Estimating Net Cash Flows. Part 5 Advice to Practitioners. Chapter 35 Common Errors in Estimation and Use of Cost of Capital. Chapter 36 Dealing with Cost of Capital Issues. Appendix I Bibliography. Appendix II Data Sources. Appendix III International Glossary of Business Valuation.Index.

  • ISBN: 978-0-470-47605-5
  • Editorial: John Wiley & Sons
  • Encuadernacion: Cartoné
  • Páginas: 792
  • Fecha Publicación: 27/10/2010
  • Nº Volúmenes: 1
  • Idioma: Inglés