I am in the mist of writing a book about the problems with finance. I suggest that there are a whole lot of problems with finance related to measuring returns, evaluating risks, attempting to compute the cost of capital and calculating long-term value. At the beginning of the book I show how the problems with finance have a negative effect on the investment in invesments that can combat climate change. This comes from biases in measuring the cost of capital, not measuring earned risk premiums, not understanding how slow and safe growth can produce value, how rate of return measures are biased, how multipes are useless unless adjusted, how terminal value should be a philosophic issue, how cost of capital can be measured objectively, how country risk premia are equivalent to corruption and how the CAPM can produce inaccurate results.
I have posted videos where I discuss the book and I work through different chapters in the videos. In the videos I promise that I will put the latest version of the book on my website. The current version in PDF format is attached to the button below. As I work through the chapters I will also post the excel files used in each chapter so you can see how things work and maybe learn some different techniques. If you have negative or even some positive comments I am begging for your feedback. Please send me an email to edwardbodmer@gmail.com and if I have a little encouragement I will use your email when I contact a publisher.
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Press this Button to Download Draft Version of my Book on Problems with Finance Theory and Practice
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Chapter 3 Back-up Excel Files
I have put the analysis files (the excel files) associated with each chapter on this page. Each file is attached to a button and some of the files are repeats of other files on the site. The first file that illustrates calculation of capital intensity is attached to the button below.
The files that I are used for the graphs and data in Chapter 2 are included in the buttons below. The back-up files are the stock price analysis files. These files are documented in the database section of the website.