This study addresses the procedure for determining discount rates for properties in industries under stress. A simple example with fixed and variable costs, which could represent a company in any of these industries, is used to demonstrate the difficulties of using standard approaches for estimated cost of capital.
Capitalization, Valuation of commercial property
Heaton, H. B. (2006). Determining discount rates for valuing properties in distressed industries. Journal of Property Tax Assessment & Administration, 3(2), 53-60. Retrieved from https://researchexchange.iaao.org/jptaa/vol3/iss2/4