IDEAS home Printed from https://ideas.repec.org/p/vuw/vuwcrt/375005.html
   My bibliography  Save this paper

Revising the revisionists more on the WACC

Author

Listed:
  • Martin Lally

Abstract

In the last issue of Competition & Regulation Times, Glenn Boyle argued that a long-standing consensus over how the cost of capital (WACC) is estimated is unravelling - in particular, that the use of the CAPM is questionable because it ignores unsystematic risks, and that these risks are both relevant and significant in assessing investment projects. In the world according to Boyle, regulators who rely upon the CAPM will underestimate WACC and therefore induce under-investment in the industries that they regulate. But Martin Lally, from Victoria University's School of Economics and Finance, sees some problems in this approach.

Suggested Citation

  • Martin Lally, 2004. "Revising the revisionists more on the WACC," Competition & Regulation Times 375005, New Zealand Institute for the Study of Competition and Regulation.
    • Handle: RePEc:vuw:vuwcrt:375005
    as

    Download full text from publisher

    File URL: https://ojs.victoria.ac.nz/crt/article/view/3750
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vuw:vuwcrt:375005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Library Technology Services (email available below). General contact details of provider: https://edirc.repec.org/data/fcvuwnz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.