Cost-of-Capital in Managerial Finance

An Examination of Practices in the German Real Economy Sector

  • Dennis¬†Schlegel

Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Table of contents

  1. Front Matter
    Pages i-xii
  2. Dennis Schlegel
    Pages 1-7
  3. Dennis Schlegel
    Pages 71-96
  4. Dennis Schlegel
    Pages 97-106
  5. Dennis Schlegel
    Pages 107-116
  6. Dennis Schlegel
    Pages 117-146
  7. Dennis Schlegel
    Pages 147-213
  8. Dennis Schlegel
    Pages 215-231
  9. Dennis Schlegel
    Pages 233-245

About this book


‚ÄčThis book examines cost-of-capital models and their application in the context of managerial finance. This includes the use of hurdle rates in capital allocation decisions, as well as target returns in performance management. Besides a review of classical finance models such as the Capital Asset Pricing Model (CAPM), other contemporary models and techniques to determine the cost-of-capital of business units and private companies are discussed. Based on a mixed methods approach, current cost-of-capital practices and their determinants are  empirically analyzed among German companies.


Agency theory CAPM Capital allocation Capital budgeting Managerial finance WACC

Authors and affiliations

  • Dennis¬†Schlegel
    • 1
  1. 1.StuttgartGermany

Bibliographic information