VOLUME 24 | NUMBER 3 | SUMMER 2012 In This Issue: Growth, Value, and Payout Policy Is Economic Growth Good for Investors? 8 Jay R. Ritter, University of Florida Blinded by Growth 19 Javier Estrada, IESE Business School Valuation with Market Multiples: How to Avoid Pitfalls When Identifying and Using Comparable Companies 26 Robert W. Holthausen, University of Pennsylvania and Mark E. Zmijewski, The University of Chicago Excess Cash and Shareholder Payout Strategies 39 Niso Abuaf, Pace University and Ramirez & Co., Inc. Toward Real-Time Financial Reporting: How to Reduce Investors’ Information Gap and the Cost of Capital 55 U. Mark Schneider, CEO, Fresenius Group Pitfalls in Levering and Unlevering Beta and Cost of Capital Estimates in DCF Valuations 60 Robert W. Holthausen, University of Pennsylvania, and Mark E. Zmijewski, The University of Chicago An Entrepreneur’s Guide to Understanding the Cost of Venture Capital 75 V. Ravi Anshuman, Indian Institute of Management Bangalore; John Martin, Baylor University; and Sheridan Titman, University of Texas at Austin Corporate Governance and the Cost of Capital: Evidence from Australian Companies 84 Peter Kien Pham, Jo-Ann Suchard, and Jason Zein, University of New South Wales Assessing Project Risk 91 Antonio E. Bernardo and Bhagwan Chowdhry, UCLA Anderson School of Management, and Amit Goyal, Swiss Finance Institute at University of Lausanne The Terminal Value and Inlation Controversy 101 Daniel Kiechle and Niklas Lampenius, University of Hohenheim