This paper provides evidence that the equity market risk premium is not constant and draws implications for estimating the cost of capital. Using data from US markets, we demonstrate that the equity market risk premium varies substantially over time. Moreover, these variations are linked to...

Theories on cost of capital have been around for decades. Unfortunately for practice, the academic discussions typically stop at a high level of generality, leaving important questions for application unanswered. Recent upheavals in financial markets have only made the practitioner's task more...

Based on interviews with major investment banks, we report how these leading practitioners apply discounted cash flow (DCF) techniques to value business enterprises. We find considerable alignment among the advisors and between practice and academic advice on major themes, including assessments...

We examine the link between endowment investment performance and human capital. Harnessing detailed information on endowments in higher education, their in-house investment staff, and their trustees, we find that expertise in alternative assets and larger professional networks are associated...

We estimate ex ante expected returns for a sample of Samp;P 500 firms over the period 1983-1998. The ex ante estimates show a better overall fit with the domestic version of the single-factor CAPM than with the global version, but the difference is small. This finding has no trend in time and is...

This paper provides evidence the equity market risk premium is not constant and draws implications for estimating the cost of capital. Using data from US markets, we demonstrate that the equity market risk premium varies substantially over time. Moreover, these variations are linked to changes...

Theories on cost of capital have been around for decades. Unfortunately for practice, the academic discussions typically stop at a high level of generality, leaving important questions for application unanswered. Recent upheavals in financial markets have only made the practitioner's task more...

OverviewThis course is intended to provide a capstone experience in corporate finance for second-year MBA students, and for upper-level law students. Nicknamed quot;Doing Dealsquot; by the students, the course consists of a series of simulations in which teams of students attempt to consummate...

We use expectational date from financial analysts to estimate a market risk premium for U.S. stocks. Using the SP500 as a proxy for the market portfolio, we find an average market risk premium of 7.14% above yields on long-term U.S. government bonds over the period of 1982-1998. We also find...

This paper examines means of payment in over 2,500 acquisitions in the UK and US over the period 1955 to 1985. Data on financing proportions, bid premia and postmerger performance are used to test the validity of tax and information hypotheses. It is difficult to explain many of the results in...