By Gilbert E. Matthews, CFA, Sutter Securities, Inc. (San Francisco, Calif., USA)
- The cost of capital is a vital issue in DCF valuations for appraisals in shareholder dissenter actions.
- Delaware has effectively set the standards for corporate valuations.
- DCF is the preferred valuation method in Delaware.
- Delaware thus sets the standards for determining the cost of capital.
- Valuators should be guided by Delaware approach for valuations generally, and specifically for determining cost of capital.