International Cost of Capital Estimation: Methods Based on Modern Asset Pricing Theory
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): - Derivation of the ICC estimation problem - Solutions based on arbitrage pricing theory - Solutions based on the capital asset pricing model - Solutions based on certainty-equivalent methods Foreign currency risks and translation - Optimal capital structure relevance and estimation - Transaction cost effects on ICC - Seemingly unobservable and nonsystematic 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.
Absolutely stunning and flawless. Promoted to one of my all-time favorite books. I've no clue how the author wrote this, but it is absolutely incredible.