Cost of Capital, + Website: Applications and Examples (Wiley Finance)
Cost of Capital, Fifth Edition: Applications and ExamplesCost of Capitalis published with updated authoritative text, applications, workbook examples and cases, a technical supplement, and website. Completely revised for this highly anticipated fifth edition, there are expanded materials on estimating the basic building blocks of the cost of equity capital, the risk-free rate, and equity risk premium.There is an expanded discussion on the volatility created by the financial crisis in 2008, the subsequent recession and uncertain recovery, and how those events have fundamentally changed how we need to interpret the inputs to the models we use to develop these estimates.Cost of Capitalincludes new case studies providing comprehensive discussion of cost of capital estimates for valuing a business and damages calculations for small and medium-sized businesses, cross-referenced to the chapters covering the theory and data.Teeming with new quotes and citations to relevant material from the leading authorities on capital valuation, the new edition includes updated discussion of the following issues:Equity risk premium and the risk-free rate, including the impact of Federal Reserve actionsHow to use Morningstar’s Ibbotson and Duff & Phelps Risk Premium Report dataCriticisms of CAPM and reasons why multiple procedures should be used in developing discount and capitalization ratesGlobal cost of capital estimation, including a new size study of European countriesAdjusting discount and capitalization rates for different measures of economic income, including pretax discount ratesCost of Capital: Applications and Examplesputs an emphasis on practical application. To that end, this updated fifth edition provides readers with exclusive access to a companion website filled with supplementary materials, allowing you to continue to learn in a hands-on fashion long after closing the book.