Cost of Capital, and Forecasting: Extending General Principles to Special Situations
摘要
This chapter develops a framework that connects cost-of-capital estimation with rigorous forecasting and business planning. It explains how discount rates and projected cash flows jointly translate risk, strategy, and economic context into defensible valuations across industries and special situations. Emphasizing methodological coherence, real-time data discipline, and cross-checks against market evidence, the chapter guides readers through practical challenges—uncertain growth, evolving macro regimes, leverage, incentives, and behavioral biases. The result is a comprehensive approach that strengthens decision-making, governance, and valuation credibility in professional settings.