Cost of Capital Estimation for Highway Concessionaires in Chile
Joint Authors
Alfaro, Miguel
Vergara-Novoa, Cristian
Sepúlveda-Rojas, Juan Pedro
Riveros, Nicolás
Source
Journal of Advanced Transportation
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-02-13
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
In this paper, we present the cost of capital estimation for highway concessionaires in Chile.
We estimated the cost of equity and the cost of debt and determined the capital structure for each one of twenty-four concessionaires that operate highways.
We based our estimations on the developments of Sharpe (1964), Modigliani and Miller (1958), and Maquieira (2009), which were also compared with the Brusov et al.
(2015) developments.
We collected stock prices for different highway concessionaires around the world from Google Finance and Reuters’ websites in order to determine the Beta of equity using a representative company.
After that, we estimated the cost of equity considering Hamada (1969) and a Capital Asset Pricing Model.
Then, we estimated the cost of capital using the cost of debt and the capital structure of Chile’s highway concessionaires.
With all above, we were able to determine the Weighted Average Cost of Capital (WACC) for highway concessions which ranges from 5.49 to 6.62%.
American Psychological Association (APA)
Vergara-Novoa, Cristian& Sepúlveda-Rojas, Juan Pedro& Alfaro, Miguel& Riveros, Nicolás. 2018. Cost of Capital Estimation for Highway Concessionaires in Chile. Journal of Advanced Transportation،Vol. 2018, no. 2018, pp.1-9.
https://search.emarefa.net/detail/BIM-1181036
Modern Language Association (MLA)
Vergara-Novoa, Cristian…[et al.]. Cost of Capital Estimation for Highway Concessionaires in Chile. Journal of Advanced Transportation No. 2018 (2018), pp.1-9.
https://search.emarefa.net/detail/BIM-1181036
American Medical Association (AMA)
Vergara-Novoa, Cristian& Sepúlveda-Rojas, Juan Pedro& Alfaro, Miguel& Riveros, Nicolás. Cost of Capital Estimation for Highway Concessionaires in Chile. Journal of Advanced Transportation. 2018. Vol. 2018, no. 2018, pp.1-9.
https://search.emarefa.net/detail/BIM-1181036
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1181036