Build-up vs. CAPM Method
In the Income Approach Example on page 2 of the September BV Update , you show the calculation of a discount rate using the CAPM method. I have several questions about the calculation: 1.
Drawing a clear distinction between income and market approaches and methodology
The point of this column is to advocate that income approach methods be distinguished clearly from market approach valuation methods. The valuation profession has (somewhat arbitrarily) classified ...
Controlling Stockholders Have No Duty to Share Control Premium Received
NCC Industries is a publicly traded Delaware corporation involved in the garment business.
Herzog, Heine, Geduld, Inc. v. NCC Industries
Plaintiffs alleged breach of fiduciary duty based on majority shareholders sale of stock at a control premium price, where public sale price dropped significantly thereafter.
New size premiums allow for differences in systematic risk
Steven A. Albright inquired about two different numbers for the size premium based on Roger Ibbotson s work for SBBI . I have had the same question, as ValueSource Pro by John Wiley ...
Consolidation IPO creates liquidity for new company
We brought you an example of a "consolidation IPO" in the medical field last year (see Spotlight Valuation, 5/96 p. 3), and here's one in the travel industry. The general idea is that a group of small ...
Ibbotson addressing cost of capital needs for business valuation
Between its publications and its forums, Ibbotson Associates is charging forward in its quest to provide more and better data to help estimate the cost of capital, especially equity capital. Many ...
New studies quantifying size premiums offer strong cost of capital support
Roger Grabowski is a partner and national director of Price Waterhouse LLP Valuation Services Group. David King is a manager with Price Waterhouse LLP in their Chicago office. This repor ...
Court Rejects Hypothetical Control Premium Scenario
At issue is the value of Clyde Wright's 201,408 shares of common stock of the Wilber Corp., which owns 100% of the common stock of Wilber National Bank.
W. Clyde Wright v. Commissioner
At issue is the valuation of decendant's 201,408 shares of common stock of the Wilber Corp.
Evidence suggests Equity Risk Premium lower than conventional wisdom thinks: Part 1 of 2
On June 5 and 6 Ibbotson Associates held their first-ever Cost of Capital and Equity Risk Premium Conference (as distinguished from their Cost of Capital Workshop, described in the sidebar on page 4).
Court Takes Position on Trademark and Unpatented Technology Values
The issues in this case pertain to the acquisition of Carnation Co. by Nestle Holdings Inc.
Nestle Holdings v. Commissioner
At issue is the fair market value of Carnation's inventory, trademarks and trade names, unpatented technology, and goodwill and going concern for federal income tax purposes.
Stein v. Stein
One issue in this case was whether the court should attach a control premium to the value of stock that was purchased during the marriage.
Ahmanson Foundation v. United States
Issues include valuation of assets in the gross estate, propriety of a charitable deduction, and valuation of property giving rise to a charitable deduction if held allowable.