Estimating Cost of Capital in the Current Environment

Estimating Cost of Capital in the Current Economic Environment Brown Bag Presentation February 13, 2009 Paul Daddio

Introduction ,[object Object],[object Object],[object Object],[object Object]

Issues To Be Addressed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Risk-free Rate Estimation ,[object Object],[object Object],[object Object],[object Object],[object Object]

Average Monthly Yield on 20-Year Treasury Bonds

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Risk-free Rate Estimation (continued)

Equity Risk Premium Estimation ,[object Object],[object Object],[object Object],[object Object]

Equity Risk Premium Estimation (continued) ,[object Object],[object Object],[object Object],[object Object]

Equity Risk Premium Estimation (continued) ,[object Object],[object Object]

Beta Estimation ,[object Object],[object Object],[object Object],[object Object],[object Object]

Beta Estimation (continued) Measuring beta at time 2 will result in an invalid estimate of beta because the “look-back period includes an aberrant time period (period B). A better estimate may be derived at time 1, even if the valuation date is time 2.

Beta Estimation (continued) ,[object Object],[object Object],[object Object],[object Object]

Cross-checking For Reasonableness ,[object Object],[object Object],[object Object]

Cross-checking For Reasonableness (continued) ,[object Object],[object Object],[object Object]

Conclusions ,[object Object],[object Object],[object Object],[object Object]

Conclusions (continued) ,[object Object],[object Object]

Estimating Cost of Capital in the Current Environment

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (19)

Semelhante a Estimating Cost of Capital in the Current Environment

Semelhante a Estimating Cost of Capital in the Current Environment (20)

Estimating Cost of Capital in the Current Environment