Determination of the Cost of Equity by means of the CAPM Method
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26110%2F14%3APU112130" target="_blank" >RIV/00216305:26110/14:PU112130 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—
Alternative languages
Result language
angličtina
Original language name
Determination of the Cost of Equity by means of the CAPM Method
Original language description
The article deals with the problematic of the calculation of the cost of equity as an inseparable part of the weighted average cost of capital (WACC) value determination (Miller R. A., USA, 2009). Various methods can be used for the calculation of the cost of equity. This text concentrates on the CAPM (Capital Asset Pricing Model) method based on the objectively identified inputs and market valuation risks (Tham J., USA, 2004).This model requires three inputs for the calculation ? risk-free interest rate, beta coefficient and return on the market portfolio shares (Damodaran A., USA, 2001). In spite of considering this method to be the most objective and most commonly used in valuation practice, it has also several disadvantages.
Czech name
—
Czech description
—
Classification
Type
D - Article in proceedings
CEP classification
JN - Civil engineering
OECD FORD branch
—
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
PBE PhD FORUM 2014
ISBN
978-80-214-5050-9
ISSN
—
e-ISSN
—
Number of pages
8
Pages from-to
163-170
Publisher name
VUT v Brně, FAST, EKŘ
Place of publication
Brno
Event location
Kroměříž
Event date
Oct 15, 2014
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
—