This book examines cost-of-capital models and their application in the context of managerial finance. This includes the use of hurdle rates in capital allocation decisions, as well as target returns in performance management. Besides a review of classical finance models such as the Capital Asset Pricing Model (CAPM), other contemporary models and techniques to determine the cost-of-capital of business units and private companies are discussed. Based on a mixed methods approach, current cost-of-capital practices and their determinants are empirically analyzed among German companies.For instance, Laier (2011) examines value reporting of German companies by analysing financial statements. Britzelmaier (2010) examines similar research questions among European listed companies. A common question that is investigated is ... In the context of large companies, there is a principal-agent relationship between shareholders and top management. Furthermore, due to delegation andanbsp;...
|Title||:||Cost-of-Capital in Managerial Finance|
|Publisher||:||Springer - 2015-02-24|