search query: @author Danbolt, J. / total: 4
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| Author: | Hirst, I.R.C. Danbolt, J. Jones, E. |
| Title: | Required rates of return for corporate investment appraisal in the presence of growth opportunities |
| Journal: | European Financial Management
2008 : NOV, VOL. 14:5, p. 989-1006 |
| Index terms: | equities investments rate of return securities capital costs growth models United Kingdom |
| Language: | eng |
| Abstract: | Traditional estimation methods for required rates of return exaggerate hurdle rates in the presence of growth opportunities (here as: g-opts). This paper aims at quantifying this effect by developing a simple model which i. identifies those companies with valuable g-ops., ii. splits the value of shares into 'assets-in-place' (here as: a-i-p.) and 'g-opts.' and iii. splits the equity beta into beta for 'a-i-p.' and 'g-opts'. G-opts. are found for UK companies over the 1990-2004 period to average 33 percent of equity value etc. |
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