The cost of capital concept is widely used in business decision-making. The current theory and estimates for measurement of cost of capital are derived from the seminal Modigliani-Miller analyses. This book generalizes this framework to include non-debt tax shields (e.g., depreciation) and default considerations. It develops several new results and shows how better cost of capital and marginal tax rate estimates can be generated. The unified cost of capital theory presented in the book is illustrated graphically and with comprehensive numerical…

A resource for understanding and practising valuation of both common fixed income investment vehicles and complex derivative instruments. The book provides a framework for evaluating any fixed income product, valuation techniques for option embedded bonds and valuing interest rate caps and floors.

The challenges facing participants in competitive electricity markets are staggering: high price volatility introduces significant financial risk into an industry accustomed to guaranteed rates of return, while illiquid forward markets prevent effective hedging strategies from being implemented. This title examines the unique properties which separate electricity from other traded commodities, including the lack of economical storage, and the impact of a scarce transmission network. The authors trace the sources of uncertainties in the price of…

This unique book analyses all the commercial aspects of oil companies, taking into account the significant structural changes within the sector since the mid-1990s. As well as detailing the analytical techniques used to price oil equities, an up-to-date section on oil industry corporate finance explains how the competitive structure of the industry has influenced company performance and how this governs corporate conduct. Illustrated with topical examples, the book examines the structure and ownership of the industry and shows how to project pr…

This guide gives investors all the tools they need to assess the financial and business opportunities offered by today's pharmaceutical sector. The second edition has been revised and updated to reflect the changes.

The American Water Works Association estimates that improving U.S. water and wastewater infrastructure could cost up to USD1 trillion over the next 20 years. As with the first and second editions, this new and updated edition of Water and Wastewater Finance and Pricing: A Comprehensive Guide is designed to explain in simple language the complex concepts related to the finance and pricing of water and wastewater infrastructure and services. The new edition has been expanded to reflect the latest trends that have developed in the water and wastew…