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Cost-Of-Capital in Managerial Finance: An Examination of Practices in the German Real Economy Sector

Cost-Of-Capital in Managerial Finance: An Examination of Practices in the German Real Economy Sector

Hardcover

Series: Contributions to Management Science

Business GeneralEconomicsInvesting & Finance

ISBN10: 3319151347
ISBN13: 9783319151342
Publisher: Springer
Published: Mar 24 2015
Pages: 245
Weight: 1.19
Height: 0.63 Width: 6.14 Depth: 9.21
Language: English
This book examines cost-of-capital models and their application in the context of managerial finance. This includes the use of hurdle rates in capital allocation decisions, as well as target returns in performance management. Besides a review of classical finance models such as the Capital Asset Pricing Model (CAPM), other contemporary models and techniques to determine the cost-of-capital of business units and private companies are discussed. Based on a mixed methods approach, current cost-of-capital practices and their determinants are empirically analyzed among German companies.

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Schlegel, Dennis

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Investing & Finance