Measurement error in the cost of equity of U.S. industries
- Finding a Realistic Cost of Capital. Hope, Clifford A. // Bank Accounting & Finance (08943958);Dec2002, Vol. 16 Issue 1, p27
Proposes the capital asset pricing model (CAPM) to determine the cost of capital in shareholder value-added applications (SVA). Factors in generating SVA; Weaknesses of CAPM; Factors influencing the price of individual equity securities and the equity market as a whole.
- The Determinants of the Cost of Equity: Evidence from Pakistan. Akhtar, Muhammad; Naveed, Muhammad; Bilal, Ahmad Raza // Abasyn University Journal of Social Sciences;2016, Vol. 9 Issue 2, p527
This research investigates the determinants of cost of equity using a data set of 263 firms listed on Pakistan stock exchange. Keeping in view the signaling effect of information on the performance of capital markets in Pakistan, we used Capital Asset Pricing Model (CAPM) to calculate the cost...
- Cost of capital issues opinions differ, casualty actuaries are told. // International Insurance Monitor;1996 1st Quarter, Vol. 49 Issue 1, p11
Focuses on the diverse means of assessing the cost of capital for insurance companies. Capital asset pricing model; Market risk premium; Generally Accepted Accounting Principles (GAAP) versus Statutory Accounting Principles (SAP).
- EQUILIBRIUM IN THE PRICING OF CAPITAL ASSETS, RISK-BEARING DEBT INSTRUMENTS, AND THE QUESTION OF OPTIMAL CAPITAL STRUCTURE: A REPLY. Haugen, Robert A.; Pappas, James L. // Journal of Financial & Quantitative Analysis;Sep72, Vol. 7 Issue 4, p2005
This article presents a response to comments made on the paper "Equilibrium in the Pricing of Capital Assets, Risk-Bearing Debt Instruments and the Question of Optimal Capital Structure." The authors note that while their original proof for the capital asset pricing model was incomplete; the...
- EficiÃªncia dab Carteira de Mercado no Plano MÃ©dia-VariÃ¢ncia. Noda, Rafael Falcão; Martelanc, Rov; Securato, José Roberto // Revista Brasileira de FinanÃ§as;Mar2014, Vol. 12 Issue 1, p67
The objective of this study is to answer the criticism to the CAPM based on findings that the market portfolio is far from the efficient frontier. We run a numeric optimization model, based on Brazilian stock market data from 2003 to 2012. For each asset, we obtain adjusted returns and standard...
- Still Many Ways to Skin a Capital Cost. Kirby, Julia // Harvard Business Review Digital Articles;3/10/2011, p2
The article discusses practices to realize growth through the use of capital asset pricing model (CAPM) and examines the reason behind the lack of consensus in CAPM interpretation, the reasonable close grouping expected despite the lack of a standard, and challenges associated with convergence.
- FINANCE THEORY IN RATE HEARINGS. Hagerman, Robert L. // Financial Management (1972);Spring76, Vol. 5 Issue 1, p18
This article discusses the empirical difficulties associated with the finance theory. New methods for estimating the cost of equity capital of regulated firms have been used in rate hearings. The increased use of finance theory is a result of widespread dissatisfaction with the comparable...
- Implications of Skewness in Returns for Utilities' Cost of Equity Capital. Conine Jr., Thomas E.; Tamarkin, Maurry // Financial Management (1972);Winter85, Vol. 14 Issue 4, p66
In this paper we use the K-L three-moment capital asset pricing model to estimate the cost of equity capital for utilities. Our purpose is to compare the three-moment estimate with the standard CAPM estimate. We show that a significant variation in direct cost estimates can result with a...
- Risk Analysis in Capital Budgeting. Robbins, Sidney M. // Journal of Accounting, Auditing & Finance;Fall77, Vol. 1 Issue 1, p5
Professor Robbins summarizes much of the current state of academic thinking in the area of capital budgeting. This is a topic which has undergone much academic debate and change over the past twenty years, and the level of mathematical and conceptual abstraction has reached a point which is...