Original Articles

A Note on The Estimation of Betas for Single Industry Companies

Published in: De Ratione
Volume 7 , issue 2 : Entrepreneurship and Africa’s Cultural Context , 2024 , pages: 24–34

DOI: 10.1080/10108270.1993.11435041

Author(s): Colin Firer University of the Witwatersrand, , Trevor A Thompson University of the Witwatersrand, ,

Keywords: pure-play, beta coefficient, unlisted, cost of equity, single industry,

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Abstract

In order to use the Capital Asset Pricing Model to estimate the cost of equity capital for an unquoted firm, it is often necessary to use the “pure-play” technique to obtain a surrogate beta with an appropriate asset structure for the unquoted firm.

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Original Articles

A Note on The Estimation of Betas for Single Industry Companies

Abstract

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