![]() sovereign debt during the summer of 2011, however, more companies are using short-term instruments. Since AFP's original 2010 study and following the S&P downgrade of U.S. for estimating a risk-free rate, most organizations adopt a long-term view and use instruments with maturities of five years and longer.a majority of organizations continue to use the Capital Asset Pricing Model (CAPM) for estimating their cost of equity, with considerable variance in how they apply the model.small fluctuations in cost of capital can create huge swings in discounted cash flow figures strongly affecting strategic decisions about future capital investments and acquisitions. ![]() The report, which is part of AFP's ongoing benchmarking and standard-setting in the field of corporate financial planning and analysis, found that in the 2013: In July 2013, AFP sent a 35-question survey to senior-level corporate practitioner members and prospects with job titles including CFO, Treasurer, and Director of Finance, generating 424 responses from both public and private organizations spanning a wide range of industries, with the largest concentration in the manufacturing industry. A new report, 'Current Trends in Estimating and Applying the Cost of Capital', released today by the Association for Financial Professionals (AFP), allows companies to compare techniques against those of other organizations.
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