Estimating the cost of equity capital has traditionally been a minefield. Complete agreement still does not exist on the best way of determining this yardstick. This guide tackles such indecision head-on; it shows how to estimate the cost of equity capital from the UK perspective and demonstrates the effects of making different assumptions on the cost estimates. The various techniques reviewed, incorporating a study of 500 UK firms, include: the capital asset pricing model (CAPM) including the frameworks introduced by Fama and French; the arbitrage pricing model; and dividend-valuation models.
- ISBN10 185971336X
- ISBN13 9781859713365
- Publish Date 1 July 1999
- Publish Status Out of Print
- Out of Print 28 September 2004
- Publish Country GB
- Publisher Elsevier Science & Technology
- Imprint CIMA Publishing
- Edition New edition
- Format Paperback
- Pages 104
- Language English