Value Seeking: Measuring the Cost of Capital for a Company: Measuring the Cost of Capital for a Company

Author: Michael J. Hurd
Publisher:
Publish Date: 2004-05-01
Features: In the book "Valuing the Corporation: Measuring the Cost of Capital," Michael J. Hurd analyzes new methods and models for determining the cost of capital. He thoroughly explains various approaches to evaluating project investments, subsidiary investments, or corporate investments, providing practitioners with an analytical framework. The book begins with a comprehensive discussion of the cost of capital from the perspective of corporate value research, using this as a starting point to explore a series of related topics: discounted cash flow, issuance costs, long-term projects, international projects, and regulated companies where traditional cash flow analysis may not apply. Hurd demonstrates how theory can be applied to daily investment decision analysis. He also provides detailed methods for analyzing the cost of capital for diversified and international companies. Each chapter includes extensive references for interested readers. This book is suitable for financial managers, executives, planners, financial analysts, and researchers in the field of finance. In today's highly competitive business environment, incorrect calculations can lead to devastating consequences. Accurately assessing the cost of capital and thereby determining the potential value of an investment project is essential for successful operations. This book focuses on the cost of capital and systematically examines related topics. Applying the principles of this book will yield substantial rewards: precise measurement of the cost of capital, effective capital budgeting, and strategic planning.