By joniferdingcong. Originally published at ValueWalk.
The models that we use to estimate cost of equity and capital in finance are built for publicly traded company, with diversified marginal investors and observable market values for equity and debt. With private businesses, owners/potential buyers tend not to be diversified and there are no observable market values for equity and debt. In this session, I talk about how to overcome those challenges:
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Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.
Slides: http://www.stern.nyu.edu/~adamodar/pd…
Total Beta dataset: http://www.stern.nyu.edu/~adamodar/pc…
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