The Cost of Capital Workbook will help financial officers of small, midsize, and even multibillion dollar companies estimate required rates of return and tackle the myriad issues associated with cost of capital. It will also help business valuation professionals of all levels to gain a greater understanding of cost of capital concepts and procedures. Using hands-on exercises designed to implement procedures described in Cost of Capital, Second Edition, the Cost of Capital Workbook provides a deeper understanding of cost of capital problems by offering a practical experience in applying solutions.
The Workbook includes multiple choice, true or false, and fill-in-the-blank questions as well as:
Exercises estimating cost of capital by the build-up model and the Capital Asset Pricing Model
Exercises using Ibbotson Associates' Stocks, Bonds, Bills, and Inflation Valuation Edition Yearbook
Applications using discounted cash flow (DCF) methods, based on forecasted earnings and cash flows
Examples covering valuing a business by both equity and invested capital procedures, making project selections, and utility-rate determinations
Numerous exercises using Ibbotson data from the Cost of Capital Workbook
Business appraisers, corporate finance officers, CPAs, and attorneys will find the Cost of Capital Workbook an indispensable guide to the effective estimation and application of cost of capital.