Cost of capital estimation has long been recognized as the most critical element in business valuation, capital budgeting, feasibility studies, and corporate finance decisions. It is also the most difficult procedure to perform and assess. In Cost of Capital: Estimation and Applications, renowned author and valuation expert Shannon Pratt addresses the most controversial issues and thorny problems in estimating the cost of capital. In a clear, concise, and easily...
Cost of capital refers to the cost of borrowing money for the purpose of raising funds and the effect of that acquired debt on shareholder's or owner's equity. This book develops a more defined method of calculating the true cost of capital with regard to equity valuation.
SHANNON P. PRATT, PhD, is a founder and Managing Director of Willamette Management Associates, one of the oldest and largest independent valuation consulting, economic analysis, and financial advisory firms, with offices in principal cities across the United States. Over a distinguished career of more than three decades, he has performed valuation engagements for M&A, ESOPs, and numerous other purposes. He has testified in a wide variety of...
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