http://www.loc.gov/mods/v3 http://www.loc.gov/standards/mods/v3/mods-3-2.xsd
Industry cost of capital, market results through March 2016
2016 Valuation Handbook: Guide to Cost of Capital; About the Data; About Duff & Phelps; Additional Resources; Table of Contents; Acknowledgements; Introduction; Chapter 1 Cost of Capital Defined; Introduction; Income Approach Overview; Discounting versus Capitalizing Concepts; Capitalization Rates versus Discount Rates; Relationship Between Capitalization Rates and Discount Rates; Valuation Date; Basic Cost of Capital Concepts; Cost of Capital is Forward-Looking; Does History Repeat Itself?; Cost of Capital is a Function of the Investment, Not the Investor
Cost of Capital is Based on Market ValueCost of Capital is Usually Stated in Nominal Terms; Cost of Capital is Usually Stated in Terms of After-tax Returns; As-if Publicly-traded; Minority Interest; Controlling Interest; Varying Cost of Capital; Sources of Capital; Cost of Capital Input Assumptions; Estimating the Cost of Preferred Equity Capital; Estimating the Cost of Debt Capital; Calculating the Weight of Capital Structure Components; Capital Structure Considerations; Varying Capital Structure Assumptions; Calculating WACC; Estimates of Cost of Capital are Imprecise
Key Things to Remember about Cost of CapitalChapter 2 Methods for Estimating the Cost of Equity Capital; Basic Framework; Defining Risk; Market Returns Increase as Risk Increases by Asset Class; Types of Risk; Maturity Risk; Market Risk; Company-specific Risk; Liquidity and Marketability Risk; Cost of Equity Capital Estimation Methods; Build-up; CRSP Deciles Size Premia -- Build-up Method; Risk Premium Report -- Build-up Method; CAPM; Estimation of Equity Beta; Modified CAPM; CRSP Deciles Size Premia and Risk Premium Report -- CAPM; Other Cost of Equity Capital Estimation Methods
Key Things to Remember about the Methods for Estimating the Cost of Equity CapitalChapter 3 Basic Building Blocks of the Cost of Equity Capital -- Risk-free Rate and Equity Risk Premium; The Risk-free Rate and Equity Risk Premium: Interrelated Concepts; Spot Risk-free Rates versus Normalized Risk-free Rates; Why Normalize the Risk-free Rate?; Why isn't the Current Spot Risk-Free Rate Considered "Normal"?; Methods of Risk-free Rate Normalization; Spot Yield or Normalized Yield?; Equity Risk Premium; Estimating the Equity Risk Premium; Ex Post Approaches; Ex Ante Approaches; Unconditional ERP
Realized Historical Stock and Bond ReturnsWorld War II Interest Rate Bias; Comparing Investor Expectations to Realized Risk Premiums; Unconditional ERP Estimates; Conditional ERP; Duff & Phelps Recommended ERP; Concluding on an ERP; As of December 31, 2015; As of January 31, 2016; Chapter 4 Basic Building Blocks of the Cost of Equity Capital -- Size Premium; Size as a Predictor of Equity Returns; Possible Explanations for the Greater Returns of Smaller Companies; The Size Effect: Empirical Evidence; The Size Effect Over Longer Periods; The Size Effect Tends to Stabilize Over Time