Those who rely on appraisers or valuation analysts rarely understand the complexties or importance of establishing the cost of capital. When I first began doing valuation work in the late 1980’s there was no practical source except the portfolio information published by Yale University finance guru Roger Ibbotson. Eventually, Dr. Ibbotson added more data points to his annual cost of capital studies for the benefit of appraisers and other finance professionals. Now there are multiple sources of cost of (equity) capital data (besides the raw data from public bond and equity markets), a few of which are listed below: Duff […]
