Cost of Capital: Estimating the Rate of Return for Public Utilities
A. Lawrence Kolbe; Read, James A, Jr.; George R. Hall
ISBN 10: 0262110946 ISBN 13: 9780262110945
Published by Mit Pr, 1984
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About this Item
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Missing dust jacket; Pages can have notes/highlighting. Spine may show signs of wear. ~ ThriftBooks: Read More, Spend Less. Seller Inventory # G0262110946I3N01
Synopsis:
One of the most contentious questions in public utility regulation is what "fair" rate of return to allow investors. This book spells out the advantages and disadvantages of the major methods used to estimate the required rate of return. It is a thorough review and critique that will prove valuable to all members of the regulatory community - commissions and their staff, legal and management counsel, and intervenors - and to students of finance and regulation.
The point of departure is the cost of capital as a concept and the rationale for setting the allowed rate of return equal to the cost of capital. On this basis a comprehensive set of evaluation criteria are developed, including theoretical, practical, and empirical aspects. With the conceptual and methodological framework established, the authors proceed to evaluate the five major estimation methods: comparable earnings, discounted cash flow, capital asset pricing model, risk positioning, and market-to-book ratio. In addition, they survey new methods of estimating the cost of capital, such as the Arbitrage Pricing Theory, that are likely to be used more frequently in the future. Several related topics are treated in appendices. The goal of the book is not to choose a single "best" method, but to provide a systematic assessment of the strengths of each.
The authors are affiliated with Charles River Associates in Boston. Lawrence Kolbe is Vice President, James Read is Senior Research Associate, and George R. Hall is Vice President. A Charles River Associates Study.
About the Author: Lawrence Kolbe is Vice President of Charles River Associates in Boston.
"About this title" may belong to another edition of this title.
Bibliographic Details
Title: Cost of Capital: Estimating the Rate of ...
Publisher: Mit Pr
Publication Date: 1984
Binding: Hardcover
Condition: Good
Dust Jacket Condition: No Jacket