April 2014
Intermediate to advanced
1344 pages
44h 24m
English
book
Cost of Capital: Applications and Examples, + Website, 5th Edition
by Shannon P. Pratt, Roger J. Grabowski, Richard Brealey
Content preview from Cost of Capital: Applications and Examples, + Website, 5th Edition
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
CHAPTER 41
Cost of Capital of Real Estate Entities1
Thomas Hamilton
Definition of a Real Estate Entity
Structure of Real Estate Entities
Direct and Indirect Real Estate Cycles
Measuring Net Cash Flow for Real Estate Entities
Valuation of Real Estate Entities
Estimating the Cost of Capital
Estimating the Capitalization Rate
Applying the Capital Asset Pricing Model
Estimating the Cost of Equity Capital as if Publicly Traded
Adjusting Cost of Equity Capital for Closely Held REIT
Computing the Weighted Average or Overall Cost of Capital
INTRODUCTION
In Chapter 40, we discussed the development of the cost of capital for direct real property investments. An equity investment in real estate can also be made indirectly by purchasing shares of a company or partnership holding real property interests. In this chapter, we discuss the development and application of the cost of capital for real estate entities that own real property interests to produce income. This chapter is an introduction to the subject; it is not intended to cover all the issues that an analyst might encounter in the process of estimating the cost of capital for real estate entities.
This chapter focuses on real ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.