Add to ORKGInternational audienceIn valuing any investment project or acquisition, executives must decide what discount rate to use to estimate the value of the projected cash flows. This paper argues that the traditional approach, which bases its estimate of the company's cost of capital on the Capital Asset Pricing Model, places the company at risk. Specifically, beta is unreliable and captures only a portion of the risk that managers and shareholders agree are important. The authors then offer an alternative measure - reflecting a company's total risk - that they say provides a reliable estimate and is consistent with the evolving theory of strategic management.<br/
The ability to accurately estimate systematic risk (or beta) in the presence of reference-day risk i...
This paper uses direct evidence from reported hurdle rates and discount rates to assess theories of ...
This paper develops a rule for calculating a discount rate to value risky projects. The rule assum...
International audienceIn valuing any investment project or acquisition, executives must decide what ...
Finding the appropriate discount rate, or cost of capital, for evaluating investment projects requir...
The celebrated capital asset pricing model (‘CAPM’) brought numerous appealing insights and spawned ...
This paper reveals some surprising implications of the capital asset pricing model (CAPM) which acco...
A routine method in business is to value risky capital investment projects by discounting their expe...
We show how to decompose a firm's beta into its beta of assets-in-place and its beta of growth ...
Over the last three decades, the capital asset pricing model has occupied a central and often contro...
In recent years, managers have turned their attention to the ways increasing the value of their comp...
Much contention still exists around the discount rate to be used in the determination of the net pre...
return, portfolio management. The Capital Asset Pricing Model (CAPM) has been the dominating capital...
This study consists of a critical evaluation of the role of the cost of capital as a "risk-adjusted"...
Applying a discounted cash flow (DCF) methodology in the determination of a mining project’s value i...
The ability to accurately estimate systematic risk (or beta) in the presence of reference-day risk i...
This paper uses direct evidence from reported hurdle rates and discount rates to assess theories of ...
This paper develops a rule for calculating a discount rate to value risky projects. The rule assum...
International audienceIn valuing any investment project or acquisition, executives must decide what ...
Finding the appropriate discount rate, or cost of capital, for evaluating investment projects requir...
The celebrated capital asset pricing model (‘CAPM’) brought numerous appealing insights and spawned ...
This paper reveals some surprising implications of the capital asset pricing model (CAPM) which acco...
A routine method in business is to value risky capital investment projects by discounting their expe...
We show how to decompose a firm's beta into its beta of assets-in-place and its beta of growth ...
Over the last three decades, the capital asset pricing model has occupied a central and often contro...
In recent years, managers have turned their attention to the ways increasing the value of their comp...
Much contention still exists around the discount rate to be used in the determination of the net pre...
return, portfolio management. The Capital Asset Pricing Model (CAPM) has been the dominating capital...
This study consists of a critical evaluation of the role of the cost of capital as a "risk-adjusted"...
Applying a discounted cash flow (DCF) methodology in the determination of a mining project’s value i...
The ability to accurately estimate systematic risk (or beta) in the presence of reference-day risk i...
This paper uses direct evidence from reported hurdle rates and discount rates to assess theories of ...
This paper develops a rule for calculating a discount rate to value risky projects. The rule assum...