search query: @indexterm CAPITAL COSTS / total: 211
reference: 52 / 211
| Author: | Krueger, M. Linke, C. |
| Title: | A spanning approach for estimating divisional cost of capital |
| Journal: | Financial Management
1994 : SPRING, VOL. 23:1, p. 64-70 |
| Index terms: | ESTIMATION CAPITAL COSTS IMPLEMENTATION |
| Language: | eng |
| Abstract: | Two techniques for estimating risk-adjusted divisional hurdle rates are the analytical approach and the pure-play approach. The analytical approach relies upon theoretical linkages between observable accounting variables and the CAPM beta risk measure. The pure-play approach uses information about firms operating in the same line of business. This study develops a third technique, a spanning approach, which combines the advantages of the analytical and pure-play techniques while avoiding their implementation problems. |
SCIMA