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Estimating the Divisional Cost of Capital: An Analysis of the Pure-Play Technique

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  • Fuller, Russell J
  • Kerr, Halbert S

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  • Fuller, Russell J & Kerr, Halbert S, 1981. "Estimating the Divisional Cost of Capital: An Analysis of the Pure-Play Technique," Journal of Finance, American Finance Association, vol. 36(5), pages 997-1009, December.
    • Handle: RePEc:bla:jfinan:v:36:y:1981:i:5:p:997-1009
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    Cited by:

    1. Samir Harith & Ruth Helen Samujh, 2020. "Small Family Businesses: Innovation, Risk and Value," JRFM, MDPI, vol. 13(10), pages 1-15, October.
    2. Albers, Christian & Lamprecht, Dirk, 2007. "Die Bewertung von Joint Ventures mit der Free Cash Flow-Methode unter besonderer Berücksichtigung kooperationsinterner Leistungsbeziehungen," Arbeitspapiere 65, University of Münster, Institute for Cooperatives.
    3. Juergen Bufka & Oliver Kemper & Dirk Schiereck, 2004. "A note on estimating the divisional cost of capital for diversified companies: an empirical evaluation of heuristic-based approaches," The European Journal of Finance, Taylor & Francis Journals, vol. 10(1), pages 68-80.
    4. Richard H. Pettway & Bradford D. Jordan, 1983. "Diversification, Double Leverage, And The Cost Of Capital," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 6(4), pages 289-300, December.
    5. Robert S. Harris & John J. Pringle, 1985. "Risk-Adjusted Discount Rates-Extensions From The Average-Risk Case," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 8(3), pages 237-244, September.
    6. Henry Collier & Timothy Grai & Steve Haslitt & Carl McGowan, 2007. "Computing the divisional cost of capital using the pure-play method," Applied Financial Economics, Taylor & Francis Journals, vol. 17(15), pages 1227-1231.
    7. Min Bai & Samir Harith, 2023. "Measuring SMEs Risk – Evidence from Malaysia," SN Business & Economics, Springer, vol. 3(7), pages 1-32, July.
    8. Stefan Dierkes & Ulrich Schäfer, 2021. "Valuation of firms with multiple business units," Journal of Business Economics, Springer, vol. 91(4), pages 401-432, May.
    9. Eberhart, Allan C., 2001. "Comparable firms and the precision of equity valuations," Journal of Banking & Finance, Elsevier, vol. 25(7), pages 1367-1400, July.
    10. Richard D. Phillips & J. David Cummins & Franklin Allen, 1996. "Financial Pricing of Insurance in the Multiple Line Insurance Company," Center for Financial Institutions Working Papers 96-09, Wharton School Center for Financial Institutions, University of Pennsylvania.
    11. Kayo, Eduardo K. & Martelanc, Roy & Brunaldi, Eduardo O. & da Silva, Walter E., 2020. "Capital asset pricing model, beta stability, and the pricing puzzle of electricity transmission in Brazil," Energy Policy, Elsevier, vol. 142(C).
    12. Simon Krotter & Andreas Schüler, 2013. "Empirische Ermittlung von Eigen-, Fremd- und Gesamtkapitalkosten: eine Untersuchung deutscher börsennotierter Aktiengesellschaften," Schmalenbach Journal of Business Research, Springer, vol. 65(5), pages 390-433, September.
    13. Mercik, Aleksander & Słoński, Tomasz & Karaś, Marta, 2024. "Understanding crypto-asset exposure: An investigation of its impact on performance and stock sensitivity among listed companies," International Review of Financial Analysis, Elsevier, vol. 92(C).
    14. WS Nel, 2015. "An Optimal Peer Group Selection Strategy for Multiples-Based Modelling in the South African Equity Market," Journal of Economics and Behavioral Studies, AMH International, vol. 7(3), pages 30-46.
    15. Kent A. Hickman & Clarence Barnes & John Byrd, 1995. "A Note on Estimating the Cost of Capital for the Undiversified Business Owner," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 4(2), pages 191-196, Fall.
    16. Hoang, Daniel & Gatzer, Sebastian & Ruckes, Martin E., 2018. "The economics of capital allocation in firms: Evidence from internal capital markets," Working Paper Series in Economics 115, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    17. Gatzer, Sebastian & Hoang, Daniel & Ruckes, Martin, 2015. "Internal Capital Markets and Diversified Firms: Theory and Practice," EconStor Preprints 169432, ZBW - Leibniz Information Centre for Economics.
    18. Michael Basch & Gonzalo García-Huidobro, 1997. "Costo de Capital en Segmentos Industriales: Una Estimación Robusta," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 34(102), pages 139-160.
    19. William Beranek & Ronnie Clayton, 1985. "Risk Differences And Financial Reporting," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 8(4), pages 327-334, December.
    20. Shirasu Yoko & Komoribayashi Katsuya & Moridaira Soichiro, 2009. "Estimation of Capital Beta and Cost of Capital: A Focus on Japanese Property-liability Insurance Companies and Lines of Business," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 3(2), pages 1-18, April.

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