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Cost-of-Capital in Managerial Finance

An Examination of Practices in the German Real Economy Sector

  • Dennis Schlegel

Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Table of contents

  1. Front Matter
    Pages i-xii
  2. Dennis Schlegel
    Pages 1-7
  3. Dennis Schlegel
    Pages 71-96
  4. Dennis Schlegel
    Pages 97-106
  5. Dennis Schlegel
    Pages 107-116
  6. Dennis Schlegel
    Pages 117-146
  7. Dennis Schlegel
    Pages 147-213
  8. Dennis Schlegel
    Pages 215-231
  9. Dennis Schlegel
    Pages 233-245

About this book

Introduction

​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.

Keywords

Agency theory CAPM Capital allocation Capital budgeting Managerial finance WACC

Authors and affiliations

  • Dennis Schlegel
    • 1
  1. 1.StuttgartGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-15135-9
  • Copyright Information Springer International Publishing Switzerland 2015
  • Publisher Name Springer, Cham
  • eBook Packages Business and Economics
  • Print ISBN 978-3-319-15134-2
  • Online ISBN 978-3-319-15135-9
  • Series Print ISSN 1431-1941
  • Series Online ISSN 2197-716X
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking