Cover -- Half Title -- Title -- Copyright -- Contents -- List of Tables -- List of Figures -- List of Abbreviations -- Acknowledgements -- Preface -- Introduction -- 1 A General Introduction to Risk, Return, and the Cost of Capital -- The relevance of the cost of capital -- The relationship between risk and return -- Historical evidence -- Market efficiency and return -- Portfolio risk and return -- The time value of money and investment criteria -- Cash flows: Free cash flows, Equity cash flows -- Summary -- 2 The Components of the Cost of Capital and Alternative Models -- Risk, return, and the cost of capital -- The weighted average cost of capital (WACC) -- Summary -- 3 Problems in Using the Models -- Problems in using the models to price risk: An introduction -- The CAPM -- The Gordon or constant growth model -- The Subjective or risk premium model -- From cost of equity to cost of capital -- Summary -- Appendix: A more detailed analysis of the CAPM -- 4 Caveats -- WACC, average risk and the divisional cost of capital -- Flotation costs -- Cost of capital and inflation -- Risk premiums for non-traded stocks -- Specific concerns for regulated industries -- Stock options -- Convertible stock -- Taxation -- Summary -- 5 Country Risk -- Country risk premiums -- Sovereign credit ratings -- Modelling country risk -- Summary -- 6 The Optimal Capital Structure -- The theory of optimal capital structure -- Empirical evidence -- How to estimate the optimal capital structure -- How to effect changes in capital structure -- Summary -- Conclusion -- Notes -- References -- Further Reading -- Index.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2019. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.