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Errors in estimation of cost of capital in investment appraisal and their significance

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  • Tomasz Wiśniewski

Abstract

W artykule przedstawiono eksperyment, w którym porównano symulowaną wartość firmy używającej poprawnej procedury oceny efektywności z wartością firmy systematycznie zawyżającej koszt kapitału. Wyniki eksperymentu symulacyjnego wskazują, że zawyżanie kosztu kapitału może nie być istotne, jeżeli firma potrafi wyszukać i zaplanować dużą liczbę dobrych projektów o wysokiej efektywności.

Suggested Citation

  • Tomasz Wiśniewski, 2008. "Errors in estimation of cost of capital in investment appraisal and their significance," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 18(3), pages 107-116.
    • Handle: RePEc:wut:journl:v:3:y:2008:p:107-116
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    References listed on IDEAS

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    1. Glen C. Arnold & Panos D. Hatzopoulos, 2000. "The Theory‐Practice Gap in Capital Budgeting: Evidence from the United Kingdom," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(5‐6), pages 603-626, June.
    2. Glen C. Arnold & Panos D. Hatzopoulos, 2000. "The Theory-Practice Gap in Capital Budgeting: Evidence from the United Kingdom," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(5&6), pages 603-626.
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