Shannon P. Pratt Cost of Capital: Estimation and Applications

New Jersey: John Wiley & Sons, Inc., 2002. — 354 p.Many of us have been anxiously awaiting Shannon Pratt’s second edition of Cost of Capital: Estimation and Applications, following the successful first edition. The current edition includes a totally rewritten and expanded chapter on how to use Ibbotson Associates’ new Stocks, Bonds, Bills, and Inflation Valuation Edition Yearbook, emphasizing the easy-to-use build-up method, as well as providing clarifying links to many of our other methods and products throughout this book. Shannon also has added a chapter on the cost of capital in Economic Value Added (EVA), included new sections and data on lack of marketability, control, and minority interests, and provided results from new studies on micro-stocks, sold companies, and price valuation multiples.