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Cost of Capital: Applications and Examples
Praise for "Cost of Capital," Fourth Edition"This book is the most incisive and exhaustive treatment of this critical subject to date."
--From the Foreword by Stephen P. Lamb, Esq., Partner, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and former vice chancellor, Delaware Court of Chancery
""Cost of Capital," Fourth Edition treats both the theory and the practical applications from the view of corporate management and investors. It contains in-depth guidance to assist corporate executives and their staffs in estimating cost of capital like no other book does. This book will serve corporate practitioners as a comprehensive reference book on this challenging topic in these most challenging economic times."
--Robert L. Parkinson Jr., Chairman and Chief Executive Office, Baxter International Inc., and former dean, School of Business Administration and Graduate School of Business, Loyola University of Chicago
"Shannon Pratt and Roger Grabowski have consolidated information on both the theoretical framework and the practical applications needed by corporate executives and their staffs in estimating cost of capital in these ever-changing economic times. It provides guidance to assist corporate practitioners from the corporate management point of view. For example, the discussions on measuring debt capacity is especially timely in this changing credit market environment. The book serves corporate practitioners as a solid reference."
--Franco Baseotto, Executive Vice President, Chief Financial Officer, and Treasurer, Foster Wheeler AG
"When computing the cost of capital for a firm, it can be fairly said that for every rule, there are a hundred exceptions. Shannon Pratt and Roger Grabowski should be credited with not only defining the basic rules that govern the computation of the cost of capital, but also a road map to navigate through the hundreds of exceptions. This belongs in every practitioner's collection of must-have valuation books."
--Aswath Damodaran, Professor, Stern School of Business, New York University
"Pratt and Grabowski have done it again. Just when you thought they couldn't possibly do a better job, they did. Cost of Capital, Fourth Edition is a terrific resource. It is without a doubt the most comprehensive book on this subject today. What really distinguishes this book from other such texts is the fact that it is easy to read--no small feat given the exhaustive and detailed research and complicated subject matter. This book makes you think hard about all the alternative views out there and helps move the valuation profession forward."
--James R. Hitchner, CPA/ABV/CFF, ASA, Managing Director, Financial Valuation Advisors; CEO, Valuation Products and Services; Editor in Chief, "Financial Valuation and Litigation Expert"; and President, Financial Consulting Group
"The Fourth Edition of "Cost of Capital" continues to be a 'one-stop shop' for background and current thinking on the development and uses of rates of return on capital. While it will have an appeal for a wide variety of constituents, it should serve as required reading and as a reference volume for students of finance and practitioners of business valuation. Readers will continue to find the volume to be a solid foundation for continued debate and research on the topic for many years to come."
--Anthony V. Aaron, Americas Leader, Quality and Risk Management, Ernst & Young Transaction Advisory Services
--From the Foreword by Stephen P. Lamb, Esq., Partner, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and former vice chancellor, Delaware Court of Chancery
""Cost of Capital," Fourth Edition treats both the theory and the practical applications from the view of corporate management and investors. It contains in-depth guidance to assist corporate executives and their staffs in estimating cost of capital like no other book does. This book will serve corporate practitioners as a comprehensive reference book on this challenging topic in these most challenging economic times."
--Robert L. Parkinson Jr., Chairman and Chief Executive Office, Baxter International Inc., and former dean, School of Business Administration and Graduate School of Business, Loyola University of Chicago
"Shannon Pratt and Roger Grabowski have consolidated information on both the theoretical framework and the practical applications needed by corporate executives and their staffs in estimating cost of capital in these ever-changing economic times. It provides guidance to assist corporate practitioners from the corporate management point of view. For example, the discussions on measuring debt capacity is especially timely in this changing credit market environment. The book serves corporate practitioners as a solid reference."
--Franco Baseotto, Executive Vice President, Chief Financial Officer, and Treasurer, Foster Wheeler AG
"When computing the cost of capital for a firm, it can be fairly said that for every rule, there are a hundred exceptions. Shannon Pratt and Roger Grabowski should be credited with not only defining the basic rules that govern the computation of the cost of capital, but also a road map to navigate through the hundreds of exceptions. This belongs in every practitioner's collection of must-have valuation books."
--Aswath Damodaran, Professor, Stern School of Business, New York University
"Pratt and Grabowski have done it again. Just when you thought they couldn't possibly do a better job, they did. Cost of Capital, Fourth Edition is a terrific resource. It is without a doubt the most comprehensive book on this subject today. What really distinguishes this book from other such texts is the fact that it is easy to read--no small feat given the exhaustive and detailed research and complicated subject matter. This book makes you think hard about all the alternative views out there and helps move the valuation profession forward."
--James R. Hitchner, CPA/ABV/CFF, ASA, Managing Director, Financial Valuation Advisors; CEO, Valuation Products and Services; Editor in Chief, "Financial Valuation and Litigation Expert"; and President, Financial Consulting Group
"The Fourth Edition of "Cost of Capital" continues to be a 'one-stop shop' for background and current thinking on the development and uses of rates of return on capital. While it will have an appeal for a wide variety of constituents, it should serve as required reading and as a reference volume for students of finance and practitioners of business valuation. Readers will continue to find the volume to be a solid foundation for continued debate and research on the topic for many years to come."
--Anthony V. Aaron, Americas Leader, Quality and Risk Management, Ernst & Young Transaction Advisory Services
- GenresFinanceNonfiction
704 pages, Hardcover
First published October 28, 2002
8 people are currently reading
39 people want to read
About the author
Shannon P. Pratt
39 books3 followersDr. Shannon P. Pratt, CFA, FASA, ARM, ABAR, MCBC, CM&AA, is a well-known authority in the field of business valuation and has written numerous books that articulate many of the concepts used in modern business valuation around the world. He is Chairman and CEO of Shannon Pratt Valuations, Inc., a business valuation firm headquartered in Portland, Oregon. He is also a member of the board of directors of Paulson Capital Corporation, an investment banking firm that specializes in small cap IPOs.
Dr. Pratt is the author of Valuing a Business: The Analysis and Appraisal of Closely Held Companies (5th edition, 2007), and the co-author of Valuing Small Businesses and Professional Practices (3rd edition) published by McGraw-Hill. He is the co-author with Roger Grabowski of Cost of Capital: Applications and Examples (2008), the co-author with Jay Fishman and William Morrison of Standards of Value, author of The Market Approach to Valuing Businesses (2nd edition), Business Valuation Body of Knowledge, Business Valuation Discounts and Premiums, and co-author with the Honorable David Laro of Business Valuation and Taxes: Procedure, Law and Perspective, all published by John Wiley & Sons, and The Lawyer's Business Valuation Handbook, published by the American Bar Association. He is also co-author of Guide to Business Valuations (17th edition), published by Practitioners Publishing Company.
* Source: Shannon Pratt Valuations website
Dr. Pratt is the author of Valuing a Business: The Analysis and Appraisal of Closely Held Companies (5th edition, 2007), and the co-author of Valuing Small Businesses and Professional Practices (3rd edition) published by McGraw-Hill. He is the co-author with Roger Grabowski of Cost of Capital: Applications and Examples (2008), the co-author with Jay Fishman and William Morrison of Standards of Value, author of The Market Approach to Valuing Businesses (2nd edition), Business Valuation Body of Knowledge, Business Valuation Discounts and Premiums, and co-author with the Honorable David Laro of Business Valuation and Taxes: Procedure, Law and Perspective, all published by John Wiley & Sons, and The Lawyer's Business Valuation Handbook, published by the American Bar Association. He is also co-author of Guide to Business Valuations (17th edition), published by Practitioners Publishing Company.
* Source: Shannon Pratt Valuations website
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September 13, 2022
Pretty much what's expected & promised. Really good structure (99% of this genre can't really boast of that!)
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