Hitchner on how to reconcile Ibbotson's 6.5% with D&P's 4.5%


One question at the cost of capital session led by Jim Hitcher down in Miami; how do you justify choosing Ibbotson over D&P or vice verse?

Jim's answer was pragmatic and thoughtful:  "If you average two numbers that are far apart, the only thing you know is that you're wrong.   But, Ibbotson and Duff & Phelps are pretty close, so I feel comfortable averaging them.  I think most appraisers can work with that."


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