ADJUSTING THE MARKET RISK PREMIUM TO REFLECT THE GLOBAL FINANCIAL CRISIS

被引：0
|
作者：
Fin, Steven Bishop F. [1 ]
Fin, Michael Fitzsimmons S. F. [2 ]
Fin, Bob Officer S. F. [3 ]
机构：
[1] Value Adviser Associates, Southbank, Vic, Australia
[2] JCP Investment Partners, Melbourne, Vic, Australia
[3] Univ Melbourne, Melbourne, Vic 3010, Australia
来源：
JASSA-THE FINSIA JOURNAL OF APPLIED FINANCE | 2011年 / 01期
关键词：
market risk premium; weighted average cost of capital (WACC); cost of equity; global financial crisis;
D O I：
暂无
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Because of the substantial increase in stock market risk arising from the global financial crisis, it is not appropriate to use a constant market risk premium (MRP) when estimating the cost of equity. This is particularly so when estimates of the weighted average cost of capital include the current high risk premiums on debt but this is not reflected in the equity MRP. We propose a method for adjusting the MRP to reflect unusual risk situations.(1)
引用
收藏
页码：8 / 14
页数：7
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