{"id":152,"date":"2010-05-31T20:52:52","date_gmt":"2010-06-01T00:52:52","guid":{"rendered":"http:\/\/www.credittrends.com\/blog\/?p=152"},"modified":"2010-06-01T15:50:19","modified_gmt":"2010-06-01T19:50:19","slug":"risk-cost-of-equity-capital-rises-again-last-week","status":"publish","type":"post","link":"https:\/\/www.credittrends.com\/blog\/2010\/05\/31\/risk-cost-of-equity-capital-rises-again-last-week\/","title":{"rendered":"Risk (Cost of Equity Capital) Rises Again Last Week"},"content":{"rendered":"<p>The cost of equity capital rose again last week according to Credit Trends comprehensive credit model. While free cash flow multiples are in the bottom half of its 40 year band, risk is in the top half.<\/p>\n<p>Yield spreads, cash tax rate, adjusted operating cash flow and stability metrics rose by the greatest amounts while free cash flow caused a decrease. Additionally, the US 2-10 year Treasury yield curve spread, illustrated below, shows the risk of recession has increased.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.bloomberg.com\/apps\/chart?h=152&amp;w=240&amp;range=1y&amp;type=gp_line&amp;cfg=BQuote.xml&amp;ticks=.USYIELD%3AIND\" alt=\"\" \/><\/p>\n<p>Credit Trends reviews 70+ fundamental credit measures in computing its cost of equity capital.<\/p>\n<p>For additional information on the model, you may pre-order &#8220;Security Valuation and Risk Analysis.&#8221; McGraw-Hill, available at all online book outlets. For the first time, the model will be released to the public.<\/p>\n<p class=\"facebook\"><a href=\"http:\/\/www.facebook.com\/share.php?u=https:\/\/www.credittrends.com\/blog\/2010\/05\/31\/risk-cost-of-equity-capital-rises-again-last-week\/\" target=\"_blank\" title=\"Share on Facebook\">Share on Facebook<\/a><\/p><div class=\"tweetthis\" style=\"text-align:left;\"><p> <a class=\"tt\" href=\"http:\/\/twitter.com\/home\/?status=Risk+%28Cost+of+Equity+Capital%29+Rises+Again+Last+Week+https%3A%2F%2Fwww.credittrends.com%2Fblog%2F%3Fp%3D152\" title=\"Post to Twitter\"><img decoding=\"async\" class=\"nothumb lazyload\" data-src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/plugins\/tweet-this\/icons\/en\/twitter\/tt-twitter.png\" alt=\"Post to Twitter\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" \/><noscript><img decoding=\"async\" class=\"nothumb\" src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/plugins\/tweet-this\/icons\/en\/twitter\/tt-twitter.png\" alt=\"Post to Twitter\" \/><\/noscript><\/a> <a class=\"tt\" href=\"http:\/\/twitter.com\/home\/?status=Risk+%28Cost+of+Equity+Capital%29+Rises+Again+Last+Week+https%3A%2F%2Fwww.credittrends.com%2Fblog%2F%3Fp%3D152\" title=\"Post to Twitter\">Tweet This Post<\/a><\/p><\/div><!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>The cost of equity capital rose again last week according to Credit Trends comprehensive credit model. While free cash flow multiples are in the bottom half of its 40 year band, risk is in the top half. Yield spreads, cash tax rate, adjusted operating cash flow and stability metrics rose by the greatest amounts while [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n<p class=\"facebook\"><a href=\"http:\/\/www.facebook.com\/share.php?u=https:\/\/www.credittrends.com\/blog\/2010\/05\/31\/risk-cost-of-equity-capital-rises-again-last-week\/\" target=\"_blank\" title=\"Share on Facebook\">Share on Facebook<\/a><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-152","post","type-post","status-publish","format-standard","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/comments?post=152"}],"version-history":[{"count":3,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/152\/revisions"}],"predecessor-version":[{"id":154,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/152\/revisions\/154"}],"wp:attachment":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/media?parent=152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/categories?post=152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/tags?post=152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}