An Application of the Capital Asset Pricing Model to Divisional Required Returns

An Application of the Capital Asset Pricing Model to Divisional Required Returns

This article describes the recent application of the CAPM by a high technology company and some of its effect on management. The study was based on interviews with management and review of various company memoranda and documents. The CAPM approach has had an important effect in establishing targets...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Financial management 1980-04, Vol.9 (1), p.14-19
1. Verfasser: Van Horne, James C.
Format: Artikel
Sprache:eng
Schlagworte:
Applications
Asset management
Beta
Capital asset pricing models
Capital assets
Capital Budgeting: Problems and Practices
Case studies
Corporations
Equipment leases
Investment return rates
Investment risk
Pricing
Proxy reporting
Proxy statements
Rates of return
Required rates of return
Return on investment
Stock shares
Subsidiary companies
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:This article describes the recent application of the CAPM by a high technology company and some of its effect on management. The study was based on interviews with management and review of various company memoranda and documents. The CAPM approach has had an important effect in establishing targets based on return on assets as opposed to sales growth.
ISSN:0046-3892
1755-053X
DOI:10.2307/3665306