The Transactional Asset Pricing Approach(TAPA): Incorporation of Leverage and Derivation of Extended Ellwood Formula with Fixed Leverage Benefits
| Autor: | Vladimir B. Michaletz, Andrey Igorevich Artemenkov |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
ellwood formula
050208 finance 05 social sciences leverage benefits 0211 other engineering and technologies TheoryofComputation_GENERAL HD1361-1395.5 021107 urban & regional planning 02 engineering and technology Microeconomics Transactional leadership Leverage (negotiation) the principle of transactional equity-in exchange 0502 economics and business Economics transactional asset pricing approach (tapa) d46 Capital asset pricing model g12 property valuation Real estate business |
| Zdroj: | Real Estate Management and Valuation, Vol 29, Iss 1, Pp 54-71 (2021) |
| ISSN: | 2300-5289 |
| DOI: | 10.2478/remav-2021-0006 |
| Popis: | The Paper discusses the derivation of the Ellwood formula on the basis of the Transactional Asset Pricing approach to valuation (TAPA) and proceeding from the dynamic principle of transactional equity-in-exchange. Discussing the notion of leverage, it introduces a formulation, in capitalized value terms, and measurement, for leverage benefits to a property purchaser. It is found that such a measure for the Ellwood formula is always zero, essentially obviating any-gains-from-trade to the purchasers of property to be had on account of leveraged transactions. To address this weakness in the Ellwood formula, a modified formula is proposed, which accounts for the requirement of positivity of leverage benefits to the purchaser of property. |
| Databáze: | OpenAIRE |
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