4th Edition of Cost of Capital released…along with two other free cost of capital resources available here

The Cost of Capital: Applications and Examples, now in its fourth edition, has just been released. Authors Shannon Pratt and Roger Grabowski updated the text to include:

• A new chapter reconciling various forms of the income approach
• Expanded material on estimating the ERP and the cost of debt capital
• An updated chapter covering cost of capital for financial reporting under SFAS 141R, 142, and 144
• Expanded chapters on risk measures and their relationship to COC and company specific risk, COC for distressed companies, and the COC in transfer pricing related to the valuation of intangible assets
• Expanded discussions on the Morningstar SBBI data

Duff & Phelps have made two other recent publications available: "Cost of Capital Estimation Issues in the Current Environment”, based on a recent presentation by Roger Grabowski (D&P) and Professor Elroy Dimson (London Business School), and “Cost of Capital Estimation in Emerging Markets: What you Need to Know,” co-authored by Grabowski, and James Harrington (D&P).

Grabowski's detailed slide presentation from the London meeting addresses:

• Definition of the cost of capital
• Estimating beta in the current environment
• Valuing distressed companies in the current environment

Grabowski and Harrington’s article, “Cost of Capital Estimation in Emerging Markets: What you need to know,” discusses:

• The risks to consider when investing globally
• International cost of capital models
• The relative risk and reward of Europe
• Diversification and cost of capital