Banking Deregulation and Industry Structure: Evidence from the French Banking Reforms of 1985 This Paper empirically investigates the impact of distortions in the banking sector on the structure and dynamics of product markets as well as on firm lev... M Bertrand,AS Schoar,D Thesmar - 《Journal...
The primary objective of this paper is to study the interaction between monetary policy, asset prices, and the cost of capital. In particular, we explore this issue in a setting where individuals face idiosyncratic risk. Incomplete information also provides a transactions role for money so that ...
We empirically examine whether the elimination of negative synergies, the reduction of internal capital market inefficiencies, and the mitigation of information problems following spinoffs lower cost of equity. The results indicate that there is no decrease in the cost of equity in the full sample, ...
Weighted Average Cost of Capital (WACC) In a world with taxes, WACC is less than the expected return of the firm’s assets. With taxes, WACC can be used to evaluate a project with the same risk and the same financing as the firm.编辑...
The cost of equity using the capital asset pricing model (CAPM) approach and the discounted cash flow approach is: CAPM Discounted Cash Flow()①A. 16.0% 16.0% ②B. 16.0% 15.4% ③C. 16.6% 15.4% A. ① B. ② C. ③ 相关知识点: 试题来源: 解析 A CAPM: 10 +5 × 1.2 = 16% ...
The primary objective of this paper is to study the interaction between monetary policy, asset prices, and the cost of capital. In particular, we explore this issue in a setting where individuals face idiosyncratic risk. Incomplete information also provides a transactions role for money so that mo...
Section E of the Study Guide for Financial Management contains several references to the Capital Asset Pricing Model (CAPM). This article introduces the CAPM and its components, shows how it can be used to estimate the cost of equity, and introduces the asset beta fo...
3 SEPTEMBER 1964 CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* WILLIAM F. SHARPEt I. INTRODUCTION ONE OF THE PROBLEMSwhich has plagued those attempting to predict the behavior of capital markets is the absence of a body of positive microeconomic theory dealing ...
These taxation issues aside, the model otherwise rests on the standard assumptions including full segmentation of national capital markets. It also treats dividend policy as exogenously determined. Estimates of the cost of equity based on this model are then compared with estimates based on the ...
This structural adjustment creates an unprecedented money-in-motion opportunity for asset managers to expand their roles as financial intermediaries: assets and liabilities are gravitating beyond the balance sheet into the world of capital markets and professionally mana...