Editorial Type:
Article Category: Research Article
| Online Publication Date: 01 Jan 2006
Practical Approach for Incorporating the Notion of Growth in the Evaluation of the Cost of Capital
Practical Approach for Incorporating the Notion of Growth in the Evaluation of the Cost of Capital
Page Range: 149 – 152
A practical approach is given for evaluating the growth rate “g” used in business evaluations. The method uses a two-stage model and is based on the determination of an effective growth rate using company projections usually found in the business plan and the expected long-term growth of the economy.Abstract
Copyright: © 2006 American Society of Appraisers
Contributor Notes
Robert Schulz graduated in 2006 as EMBA from the Faculté d'Administration, Université de Sherbrooke, 2500, boul. de l'Université (Québec) J1K 2R1. His present address is Hydro-Québec Research Institute, 1800 boul Lionel Boulet, Varennes (Québec) J3X 1S1.