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Book Cover
Author Pratt, Shannon P

Title Cost of capital : estimation and applications / Shannon P. Pratt
Edition 2nd ed
Published Hoboken, N.J. : John Wiley & Sons, ©2002


Description 1 online resource (xxx, 322 pages) : illustrations
Series Finance professional collection
Contents 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
Summary 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
Bibliography Includes bibliographical references and index
Notes Print version record
Subject Capital investments -- United States
Business enterprises -- Valuation -- United States
BUSINESS & ECONOMICS -- Investments & Securities -- General.
Business enterprises -- Valuation.
Capital investments.
United States.
Form Electronic book
ISBN 047143261X