Cost of Capital at Ameritrade - Case - Harvard Business School

Case HBS Case Collection October Revised April Mitchell and Erik Stafford. In order to evaluate whether the strategy would generate sufficient future cash flows to merit the investment, Joe Ricketts, chairman and CEO of Ameritrade, needs an estimate of the project's cost of capital. There is considerable disagreement as to the correct cost of capital estimate.

There is also disagreement as to the type of business that Ameritrade is in. To obtain executable spreadsheets courseware , please contact our customer service department at custserv hbsp.

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Supplement HBS Case Collection December Revised May Financial Services Industry ;. Working Paper HBS Working Paper Series Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting.

Article Journal of Finance. The Cost of Capital for Alternative Investments. Jurek and Erik Stafford. Case HBS Case Collection October Revised June Grantham, Mayo, and Van Otterloo, Estimating the Equity Risk Premium. Samuel Hanson , Erik Stafford and Luis Viceira.

Ameritrade Case Study by Markella Neocleous on Prezi

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Finance Globalization Health Care. Human Behavior and Decision-Making Leadership Social Enterprise. Accounting and Management Business, Government and the International Economy Entrepreneurial Management. Finance General Management Marketing. Technology and Operations Management. Case HBS Case Collection October Revised April Cost of Capital at Ameritrade by Mark L.

Related Work Supplement HBS Case Collection December Revised May Cost of Capital at Ameritrade Mark L. Mitchell and Erik Stafford Spreadsheet to Cite View Details Purchase Related. About the Author Erik Stafford. More from the Author Working Paper HBS Working Paper Series Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting Erik Stafford Private equity funds tend to select relatively small firms with low EBITDA multiples.

Publicly traded equities with these characteristics have high risk-adjusted returns after controlling for common factors typically associated with value stocks. Hold-to-maturity accounting of portfolio net asset value eliminates the majority of measured risk. A passive portfolio of small, low EBITDA multiple stocks with modest amounts of leverage and hold-to-maturity accounting of net asset value produces an unconditional return distribution that is highly consistent with that of the pre-fee aggregate private equity index.

Cost of Capital at Ameritrade - Case - Harvard Business School

Cite View Details Read Now Related. Article Journal of Finance The Cost of Capital for Alternative Investments Jakub W. We show that the high excess returns to hedge funds and put-writing are consistent with an equilibrium in which a small subset of investors specialize in bearing downside market risks.

Required rates of return in such an equilibrium can dramatically exceed those suggested by traditional models, affecting inference about the attractiveness of these investments. Cite View Details Find at Harvard Read Now Related. Case HBS Case Collection October Revised June Grantham, Mayo, and Van Otterloo, Estimating the Equity Risk Premium Samuel Hanson , Erik Stafford and Luis Viceira Keywords: Hanson, Samuel, Erik Stafford, and Luis Viceira.

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Cite View Details Read Now. Cite View Details Find at Harvard Read Now. Cite View Details Educators Purchase.