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GP: Why let Freud rule your world? Do what I do... DanS it!
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I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891 -
Re: Double Dip? Short Best Buy!
What do you mean when you say cost of capitol? long term debt or equity?Originally posted by DanS
Anecdotally and from personal experience, the mid to high end home theater market is in a funk. It's a boutique market to be sure, but I can't help but think that other consumer markets are experiencing similar slowdowns...
Colon: Quite low in comparison to what these companies were able to obtain capital only three or four years ago. If anybody has Ibbottson's, I would be quite interested to see the average cost of capital for '95 through '01, for instance...Comment
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I was totally going to. It's just that I've been so tough on you, I figured I needed to Caesar's wife it.Originally posted by DanS
GP: Why let Freud rule your world? Do what I do... DanS it!Comment
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Could you explain that? The interest rate for corporate debt was set by the financial markets. If funds were not sufficient, rates would go up, no? If the markets judged the debt as worthwhile, than why shouldn't funds come in from overseas? Or the reverse? I mean nobody put a gun to foreign funds managers to make them buy US corp bonds. They obviously didn't think the rates were too low when they bought bonds.Originally posted by Roland
Yup. In this case, too low - ie, the interest rate (or capital returns in general) did not balance savings with investments. For a while you can paper over that by importing capital and inciting savings through the promise of speculative gains. But in the end, government price fixing does not work.Comment
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Doesn't Ibbottson's have a short-term and long-term equities and debt series? It would be nice to see all 4.
Re Roland's post, I think he means the equity portion of the cost of capital number. I think the cost for equity capital was quite low in some recent years.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Not familar with Ibbottson's. Is it like Barra? (beta values)Originally posted by DanS
Doesn't Ibbottson's have a short-term and long-term equities and debt series? It would be nice to see all 4.
Re Roland's post, I think he means the equity portion of the cost of capital number. I think the cost for equity capital was quite low in some recent years.Comment
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I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Thanks. So is Ksube what Roland mentions or is it MRP? Or is it just WACC?Comment
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umm...how do I use html or vB to do sub or superscripts?Originally posted by GP
Thanks. So is Ksube what Roland mentions or is it MRP? Or is it just WACC?Comment
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GP: Let me do some research on numbers. Google, google.
In the meantime, I thought it was really funny that Enron says liabilities now run $100 billion, an odd $55 billion or so more than originally thought. I think this is the point in the bankruptcy proceedings where you file all of your assets/liabilities.
I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Which number will you research? If you want term definitions, just look at Valuation by Copeland, et.al. 2nd edition.Originally posted by DanS
GP: Let me do some research on numbers. Google, google.
(A decent library will have it or can get it for you.)Comment
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(Keeping seperate ideas to seperate posts)Originally posted by DanS
In the meantime, I thought it was really funny that Enron says liabilities now run $100 billion, an odd $55 billion or so more than originally thought. I think this is the point in the bankruptcy proceedings where you file all of your assets/liabilities.
WSJ has been covering this pretty thoroughly. Was an article on this today. I am interested in the exact form of the other obligations.Comment
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other obligations
IOUs to hookers and strippers
Markers to gamblers and loan sharks
Liens to drug dealers
you know, the usual stuff“It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”
― C.S. Lewis, The Abolition of ManComment
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"Which number will you research?"
I remember seeing a cost of equity number that was surprisingly low. I'm trying to research the basis of that number, and how it was derived.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Oh bother. Not much on the web--other than Greenspan saying that there was "extraordinarily low cost of equity capital available to some firms" in late 1999 and 2000--so I'm going to slog through your acronyms at a disadvantage.
Is Ke just how much it would cost to put more stock on the market? If so, then that's a candidate.
If MRP is how much an equity will pay over a bond, then that would seem also to have applied.
I'll let Roland speak for himself, though. Don't want Greenspam putting words in his mouth.
Last edited by DanS; April 12, 2002, 22:34.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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