Business, Management and Accounting
4 years ago

Market crashes amplify biases in estimating cost of capital, impacting corporate decisions.

1 view
RePEc: Research Papers in Economics
Practical approach to estimating cost of capital
Domantas Skardziukas

Paper Summary

The article discusses how estimating the cost of capital for companies has become more challenging due to market crashes. It reviews research on different methods for estimating cost of capital and emphasizes the importance of considering times of crises. The study also shows that different preferences can lead to variations in the cost of equity capital and terminal value of a company.

Related papers

Business, Management and Accounting
8 years ago

Revolutionizing Project Financing: Redefining Risk and Capital Costs for Success

Value-based Management
2 views
Economics, Econometrics and Finance
3 years ago

Global investment decisions revolutionized by new cost of capital insights.

Real Options
Value-based Management
2 views
Business, Management and Accounting
4 years ago

Unlocking Company Success: The Key to Maximizing Value Revealed

Value-based Management
Economic Management
Development in Serbia
1 view