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Journal of Zhejiang University SCIENCE A 2004 Vol.5 No.5 P.499-508

http://doi.org/10.1631/jzus.2004.0499


The Q theory of investment, the capital asset pricing model, and asset valuation: a synthesis


Author(s):  MCDONALD John F.

Affiliation(s):  College of Business Administration, University of Illinois at Chicago, Chicago, USA

Corresponding email(s):   mcdonald@uic.edu

Key Words:  Investment theory, Asset pricing, Appraisal


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MCDONALD John F.. The Q theory of investment, the capital asset pricing model, and asset valuation: a synthesis[J]. Journal of Zhejiang University Science A, 2004, 5(5): 499-508.

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Abstract: 
The paper combines Tobin's Q theory of real investment with the capital asset pricing model to produce a new and relatively simple procedure for the valuation of real assets using the income approach. Applications of the new method are provided.

Darkslateblue:Affiliate; Royal Blue:Author; Turquoise:Article

Reference

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[10] McDonald, J., 2002. Property taxation and optimal capital structure in real estate investment.Review of Accounting and Finance,1(2):5-22.

[11] Rajan, G., Zingales, L., 2003. Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity. Crown Business, New York.

[12] Ring, A., Boykin, J., 1986. The Valuation of Real Estate. Prentice-Hall, Englewood Cliffs, NJ, p.206.

[13] Romer, D., 1996. Advanced Macroeconomics. McGraw-Hill, New York.

[14] Rubenstein, M., 1973. A mean-variance synthesis of corporate financial theory.Journal of Finance,28:167-181.

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[18] Young, M., Graff, R., 1995. Real estate is not normal: a fresh look at real estate return distributions.Journal of Real Estate Finance and Economics,10(3):225-259.

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