Cost of Capital: Estimation and Applications, Second Edition (Book)

Cost of Capital: Estimation and Applications, Second Edition (Book) $115.00
Cost of Capital: Estimation and Applications, Second Edition (Book)

Expert advice for the proper discount and capitalization rates to use for valuations.

Business Valuation Book
Shannon P. Pratt
John Wiley & Sons
322 pages
October 2002

Determining the appropriate cost of capital to use for a business valuation (or for other financial analyses) is one of the most critical, yet error-prone, decisions a financial analyst can make. Valuation expert Shannon Pratt starts with the basics and works up to a complete analysis of how to choose the appropriate cost of capital rate.

This book is applicable for small and midsize companies as well as the largest Fortune 100 corporations. Mr. Pratt describes the development of discount and capitalization rates, how to set the appropriate rate for different situations and how to avoid common mistakes in setting rates.

This book is invaluable for business appraisers, valuation professionals, and anyone else who must use accurate discount or capitalization rates for their financial analyses.

SHANNON P. PRATT, CFA, FASA, MCBA, is a founder and Managing Director of Willamette Management Associates, one of the oldest and largest independent valuation consulting, economic analysis, and financial advisory firms, with offices in principal cities across the United States. Over a distinguished career of more than three decades, he has performed valuation engagements for M&As, ESOPs, and numerous other purposes. He has testified in a wide variety of federal and state courts across the country and frequently participates in arbitration and mediation proceedings. Dr. Pratt is one of the most successful and respected authors in his field. He is coauthor of several industry standards, including Valuing a Business: the Analysis and Appraisal of Closely Held Companies and Valuing Small Businesses and Professional Practices. He is also Editor-in-Chief of Shannon Pratt’s Business Valuation Updates, the primary monthly newsletter in the field of business valuation.