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This volume was prepared by Luise Röpke while she was working at the Ifo Institute. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It includes three self-contained chapters about aspects of the integration of new...
Persistent link: https://www.econbiz.de/10010493596
This volume was prepared by Luise Röpke while she was working at the Ifo Institute. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It includes three self-contained chapters about aspects of the integration of new...
Persistent link: https://www.econbiz.de/10011742940
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Practitioners commonly augment the CAPM cost of equity by adding the Size Premium in Excess of CAPM published in the … existence of a size premium. Moreover, even if a size premium is deemed to be warranted, the Size Premium in Excess of CAPM as … calculated by Ibbotson and Duff & Phelps are inconsistent with the CAPM cost of equity estimated by valuation practitioners and …
Persistent link: https://www.econbiz.de/10012969941
We examine the relationship between stock extreme illiquidity and the implied cost of capital for firms from 45 countries. We document robust evidence that firms whose stocks have a greater potential for extreme illiquidity realizations suffer from higher cost of capital. A one standard...
Persistent link: https://www.econbiz.de/10012922232
In the work, the subject of the discount rate assessment is presented. It is crucial as regards assessing the non-financial investment profitability. The discount rate is usually considered as constant one in the whole investment period, which seems to be the main problem. The constant discount...
Persistent link: https://www.econbiz.de/10012010917
Based on the insight that risk exposure as quantified in the consumption based asset pricing model (CCAPM) is linearly proportional to the cash flow growth rate, we introduce a discounted cash flow model with a time-varying expected return structure matching the implicitly assumed risk exposure...
Persistent link: https://www.econbiz.de/10012487967