McLelland's "International cost of capital estimation" is a definitive, concise treatment of the modern capital asset pricing theories and related empirical methods needed by serious finance professionals for developing unbiased and reliable estimates of international cost of capital (ICC): (1) The fundamental international nature of risks in modern, integrated economies.(2) Derivation of the ICC estimation problem. (3) Solutions based on arbitrage pricing theory. (4) Solutions based on the capital asset pricing model. (5) ...
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McLelland's "International cost of capital estimation" is a definitive, concise treatment of the modern capital asset pricing theories and related empirical methods needed by serious finance professionals for developing unbiased and reliable estimates of international cost of capital (ICC): (1) The fundamental international nature of risks in modern, integrated economies.(2) Derivation of the ICC estimation problem. (3) Solutions based on arbitrage pricing theory. (4) Solutions based on the capital asset pricing model. (5) Solutions based on certainty-equivalent methods. (5) Foreign currency risks and translation. (6) Optimal capital structure relevance and estimation. (7) Transaction cost effects on ICC. (8) Seemingly unobservable and non-systematic risks.Serious finance professionals can also develop a deeper, more practical understanding of modern asset pricing theory and how it is applied rationally in real-world financial decision-making.
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