The CFA Institute Research Foundation has put out the first edition of the “International Guide to Cost of Capital (IGCC) Summary Edition” from Duff and Phelps/Kroll. This 173-page work is an abridged version of the research and data that are available on the D&P/Kroll website and is the result of a new long-term partnership between the foundation and D&P/Kroll for the annual publication of the IGCC. The publication examines the important difference in risk characteristics of investing in various countries and has the following seven chapters:
- “International Cost of Capital Overview”;
- “Strengths and Weaknesses of Commonly Used Models”;
- “International Equity Risk Premia”;
- “Country Yield Spread Model”;
- “Relative Volatility Model”;
- “Erb-Harvey-Viskanta Country Credit Rating Mode”; and
- “Firm Size and the Cost of Equity Capital in Europe.”
The publication is free of charge, and you can download it if you click here.
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