Cost of Capital in Litigation: Applications and Examples (Wiley Finance) - Hardcover

Pratt, Shannon P.; Grabowski, Roger J.

Hardcover

ISBN 10: 0470880945 ISBN 13: 9780470880944

Publisher: John Wiley & Sons, 2010

Synopsis

Cost of Capital in Litigation addresses cost of capital issues in litigation and discusses major decisions, highlighting how to avoid errors that have often been made by experts. The book helps the attorney and valuation expert understand the decisions within the context of the theory of cost of capital and includes a chapter on cross-examining experts on cost of capital issues. Throughout, there are citation to relevant material and cross-reference to Cost of Capital: Applications and Examples, Fourth Edition.

About this title

About the Author

Roger J. Grabowski is Manag-ing Director of Duff & Phelps LLC in Chicago, Illinois, and author of the annual Duff & Phelps Risk Premium Report. He is the co-author of Cost of Capital, Third Edition, and has authored several articles during the crisis that began in 2008, including "Cost of Capital Estimation in the Current Distressed Environment," featured in the Journal of Applied Research in Accounting and Finance. Grabowski has testified in court as an expert witness on many valuation issues.

From the Inside Flap

Cost of Capital in Litigation: Applications and Examples

The "cost of capital" is the expected rate of return for the purpose of attracting funds, and its estimation has long been recognized as one of the most critical elements in business valuation and damages calculations. Addressing the many different methods of calculating value and different standards of value, Cost of Capital in Litigation delves deeply into the myriad reasons why and how courts may differ in their decisions based on the topic, jurisdiction, or available evidence.

Because cost of capital is critical to the valuation of any ongoing business, the thorough understanding, analysis, and presentation of cost of capital issues goes a long way toward winning in court. Navigating deftly between fundamentals and intricate nuances, Cost of Capital in Litigation addresses the needs of those in the valuation profession who require both introductory materials and detailed analysis. Shannon Pratt and Roger Grabowski two major figures in the world of business valuation draw on their decades of experience in business valuations and as expert witnesses to highlight major decisions as well as errors to avoid.

A valuable resource for attorneys and valuation experts, Cost of Capital in Litigation includes:

• A useful summary of investment and valuation fundamentals, including explanations of economic theories and valuation models

• The cost of capital and discount rates in various court cases, including estate and gift tax cases, intellectual property disputes, bankruptcies, and family law cases

• Exceptionally detailed reviews of the methodology propounded by experts, and those accepted or rejected by courts, along with commentary on the experts' and courts' reasoning and analysis

• Summaries of existing court decisions, plus discussion of flaws in reasoning, methodology, and analysis that should be considered in the future by litigants, experts, attorneys, and judges

• A summary of how the Delaware Court of Chancery and the Delaware Supreme Court have viewed the discounted cash flow method

• Summaries of cost of capital guidelines used by state assessment authorities in unitary assessment matters

• Comprehensive discussion of cost of capital methods used in regulated industries for rate making

Complemented by a foreword by David Laro, Judge of the United States Tax Court, Cost of Capital in Litigation will help professionals in the legal, financial and accounting fields develop a thorough understanding of court decisions within the context of the theory of cost of capital.

The "father of business valuations," SHANNON P. PRATT is the author of several bestselling Wiley business valuation publications and also a sought-after speaker at business valuation industry conferences. He is the managing owner of Shannon Pratt Valuations, Portland, Oregon. He has served as supervisory analyst for over 3,000 business valuation engagements in forty years and as an expert witness in numerous state and federal courts on contested business valuations.

Edition details

• Publisher: John Wiley & Sons
• Publication date: 2010
• Language: English
• ISBN 10: 0470880945
• ISBN 13: 9780470880944
• Binding: Hardcover
• Edition number: 4
• Number of pages: 302