On the unavoidability of ‘unscientific’ judgment in estimating the cost of capital
作者:
Howard E. Thompson,
Wing K. Wong,
期刊:
Managerial and Decision Economics
(WILEY Available online 1991)
卷期:
Volume 12,
issue 1
页码: 27-42
ISSN:0143-6570
年代: 1991
DOI:10.1002/mde.4090120104
出版商: John Wiley&Sons, Ltd.
数据来源: WILEY
摘要:
AbstractEstimating the cost of capital using DCF methods requires forecasting dividends. This paper shows that past dividend behavior may support more than one reasonable forecasting model and that reasonable forecasting models can lead to divergent estimates of the cost of capital. We find no way of selecting the best cost of capital estimate. Any choice must ultimately be based on ‘judgment’ of the anal
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