Adjusting Cost of Capital for Prevailing Market Conditions

Business Valuation UpdateVol. 18 No. 1
January 2012
Marc Vianello, CPA, ABV, CFF


Revenue Ruling 59-60 requires that the fair market value of specific shares of stock reflect general economic conditions, be they “normal,” “boom,” or “depression.” However, this requirement cannot be met using the Ibbotson and Duff & Phelps cost of capit ...