Central to modern finance theory is an understanding of the cost of capital-the minimum required rate of return that is used by companies and investors for both valuation and ongoing performance measurement. This paper provides new insights into the market risk premium for U.S. equities, as well...

The financial management practices of many multinational corporations are at odds with both financial theory and the strategic case for global expansion. Despite the weight of academic literature, many financial executives still cling to ad hoc rules of thumb that discourage value-enhancing...