Detail publikačního výsledku

Determination of the Cost of Equity by means of the CAPM Method

TURKOVÁ, J.; KORYTÁROVÁ, J.

Originální název

Determination of the Cost of Equity by means of the CAPM Method

Anglický název

Determination of the Cost of Equity by means of the CAPM Method

Druh

Stať ve sborníku v databázi WoS či Scopus

Originální abstrakt

The article deals with the problematic of the calculation of the cost of equity as an inseparable part of the weighted average cost of capital (WACC) value determination (Miller R. A., USA, 2009). Various methods can be used for the calculation of the cost of equity. This text concentrates on the CAPM (Capital Asset Pricing Model) method based on the objectively identified inputs and market valuation risks (Tham J., USA, 2004).This model requires three inputs for the calculation – risk-free interest rate, beta coefficient and return on the market portfolio shares (Damodaran A., USA, 2001). In spite of considering this method to be the most objective and most commonly used in valuation practice, it has also several disadvantages.

Anglický abstrakt

The article deals with the problematic of the calculation of the cost of equity as an inseparable part of the weighted average cost of capital (WACC) value determination (Miller R. A., USA, 2009). Various methods can be used for the calculation of the cost of equity. This text concentrates on the CAPM (Capital Asset Pricing Model) method based on the objectively identified inputs and market valuation risks (Tham J., USA, 2004).This model requires three inputs for the calculation – risk-free interest rate, beta coefficient and return on the market portfolio shares (Damodaran A., USA, 2001). In spite of considering this method to be the most objective and most commonly used in valuation practice, it has also several disadvantages.

Klíčová slova

Discount rate, weighted cost of capital, cost of equity, capital asset pricing, risk premium, beta coefficient

Klíčová slova v angličtině

Discount rate, weighted cost of capital, cost of equity, capital asset pricing, risk premium, beta coefficient

Autoři

TURKOVÁ, J.; KORYTÁROVÁ, J.

Vydáno

16.10.2014

Nakladatel

VUT v Brně, FAST, EKŘ

Místo

Brno

ISBN

978-80-214-5050-9

Kniha

PBE PhD FORUM 2014

Strany od

163

Strany do

170

Strany počet

8

BibTex

@inproceedings{BUT111728,
  author="Jiřina {Vrbková} and Jana {Korytárová}",
  title="Determination of the Cost of Equity by means of the CAPM Method",
  booktitle="PBE PhD FORUM 2014",
  year="2014",
  number="1",
  pages="163--170",
  publisher="VUT v Brně, FAST, EKŘ",
  address="Brno",
  isbn="978-80-214-5050-9"
}