The Leverage Factor by James Ardell - HTML preview
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5. - The Cost of Equity 99
Modifications, 100
The Reinvestment Rate and Opportunity Costs, 103
Evaluating the Cost of Equity: Methodology, 104
The CAPM as a Building Block for Capital Structure Analysis, 110
An Estimate of Risk and not Prediction, 117
Anomalies Pertaining to the Use of the Cost of Equity in Capital Structure, 119 Adaptive Expectations versus Rational Expectations, 120
The Decomposition of Beta, 122
Balancing Leverage, Risk and the CAPM, 127
Beta and Leverage, 128
A Simple Equalizer, 129
Concluding Comments, 131