John Paglia (Pepperdine University) and Rob Slee (Robertson & Foley) just published the recent results of the Pepperdine Private Capital Markets Project. The semi-annual survey of private capital market return data reveals that cash flow loans have the lowest average rates while capital obtained from factors has the highest average rates. As the size of loan or investment increases, the cost of borrowing or financing from any of the following sources decreases. The 158-page report is available here.
Look for “Should a Private Cost of Capital Method Replace CAPM and BUM?” in the next issue of BV Update (August 2010) for a closer look at the Pepperdine Project.
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