Book description
Praise for Cost of Capital, Fourth Edition
"This book is the most incisive and exhaustive treatment of this
critical subject to date."
-From the Foreword by Stephen P.
Lamb, Esq., Partner, Paul, Weiss, Rifkind, Wharton & Garrison LLP,
and former vice chancellor, Delaware Court of Chancery
"Cost of Capital, Fourth Edition treats both the theory
and the practical applications from the view of corporate management
and investors. It contains in-depth guidance to assist corporate
executives and their staffs in estimating cost of capital like no
other book does. This book will serve corporate practitioners as a
comprehensive reference book on this challenging topic in these most
challenging economic times."
-Robert L. Parkinson
Jr., Chairman and Chief Executive Office, Baxter International
Inc., and former dean, School of Business Administration and Graduate
School of Business, Loyola University of Chicago
"Shannon Pratt and Roger Grabowski have consolidated information
on both the theoretical framework and the practical applications
needed by corporate executives and their staffs in estimating cost of
capital in these ever-changing economic times. It provides guidance to
assist corporate practitioners from the corporate management point of
view. For example, the discussions on measuring debt capacity is
especially timely in this changing credit market environment. The book
serves corporate practitioners as a solid
reference."
-Franco Baseotto, Executive Vice
President, Chief Financial Officer, and Treasurer, Foster Wheeler AG
"When computing the cost of capital for a firm, it can be fairly
said that for every rule, there are a hundred exceptions. Shannon
Pratt and Roger Grabowski should be credited with not only defining
the basic rules that govern the computation of the cost of capital,
but also a road map to navigate through the hundreds of exceptions.
This belongs in every practitioner's collection of must-have valuation
books."
-Aswath Damodaran, Professor, Stern School
of Business, New York University
"Pratt and Grabowski have done it again. Just when you thought
they couldn't possibly do a better job, they did. Cost of Capital,
Fourth Edition is a terrific resource. It is without a doubt the most
comprehensive book on this subject today. What really distinguishes
this book from other such texts is the fact that it is easy to read-no
small feat given the exhaustive and detailed research and complicated
subject matter. This book makes you think hard about all the
alternative views out there and helps move the valuation profession
forward."
-James R. Hitchner, CPA/ABV/CFF, ASA,
Managing Director, Financial Valuation Advisors; CEO, Valuation
Products and Services; Editor in Chief, Financial Valuation and
Litigation Expert; and President, Financial Consulting Group
"The Fourth Edition of Cost of Capital continues to be a
'one-stop shop' for background and current thinking on the development
and uses of rates of return on capital. While it will have an appeal
for a wide variety of constituents, it should serve as required
reading and as a reference volume for students of finance and
practitioners of business valuation. Readers will continue to find the
volume to be a solid foundation for continued debate and research on
the topic for many years to come."
-Anthony V. Aaron,
Americas Leader, Quality and Risk Management, Ernst & Young
Transaction Advisory Services
Shannon P. Pratt, CFA, FASA, ARM, MCBA, CM&AA,
referred to as the father of business valuations, is the author of
several bestselling Wiley business valuation books and a sought-after
speaker at business valuation industry conferences. He is the managing
owner of Shannon Pratt Valuations, Inc., and has served as supervisory
analyst for over 3,000 business valuation engagements in forty years
and as an expert witness in numerous state and federal courts on
contested business valuations.
Roger J. Grabowski is managing director of Duff & Phelps
LLC. Roger has testified in court as an expert witness on the value of
closely held businesses and business interests, matters of solvency,
valuation, and amortization of intangible assets, and other valuation
issues. He testified in the Northern Trust case, the first U. S. Tax
Court decision that adopted the discounted cash flow method to value
the stock of a closely held business with the discount rate based on
the capital asset pricing model. Grabowski authors the annual Duff
& Phelps Risk Premium Report.
