This paper sets the theoretical and empirical framework to estimate a fair rate of return for the providers of equity capital to California utilities. We triangulate this answer by: (1) estimating the cost of equity by the Dividend-Discount Model, and its close cousin the Price-to-Equity Model,...

Combining the theory with the empirical evidence, I propose a pragmatic approach to estimating the cost of equity for industry groups operating in African, Asian, and Latin American emerging markets, and high-risk European markets. My approach has two building blocks: (1) use of the U.S.-based...

The current macroeconomic outlook presents a duality: On the one hand, Federal Reserve forecasters believe that short-term rates will remain excessively low (0-25 basis points) for a prolonged time period, possibly extending into 2015. On the other hand, the balance sheet of the Federal Reserve...