Determine the cost of capital in emerging nation, Financial Management

Assignment Help:

How can we measure a company's cost of capital in emerging nations, especially when there is no state bond which we could take as a reference?

Although there is no state bond whose flows could be considered "risk-free," the needed return to shares is a matter of common sense (experience also helps): it is the rate at which we measure the present value of flows, considering its risk.

 


Related Discussions:- Determine the cost of capital in emerging nation

Monte-carlo simulation, Monte-Carlo Simulation Let us, for a shortwhil...

Monte-Carlo Simulation Let us, for a shortwhile, leave the illustration for determining the price and consider a simpler illustration for understanding the Monte-Carlo method

Determine a legal factors which could restrict a corporation, Are there any...

Are there any legal factors which could restrict a corporation in its effort to pay cash dividends to common stockholders?  Explain. A firm might be legally restricted as to the

Define long position in future contract and options contract, What is the m...

What is the major difference in the obligation of one with a long position in a futures (or forward) contract in comparison to an options contract? Answer: A futures or forward c

Management of sundry debtors, Management of Sundry Debtors: SUNDRY - M...

Management of Sundry Debtors: SUNDRY - Miscellaneous infrequent or small customers that are not given individual ledger accounts but are classified as a group. SUNDRY CREDI

Ledge ac count, Ask question #Minimum 100 words accepted

Ask question #Minimum 100 words accepted

What do you mean by cash flow ratios, Q. What do you mean by Cash Flow Rati...

Q. What do you mean by Cash Flow Ratios? Cash Flow Ratios: - Cash Flow Ratios are an additional device of cash management. Some important cash flow ratios are: (i) Cash Turn

Interest rate risk for floating-rate securities, In a fixed-rate coup...

In a fixed-rate coupon bond, the change in the price can be attributed to the change in the market interest rates. This change is due to the difference in the pre

Noi approach, Two companies are identical in all aspects except in the debt...

Two companies are identical in all aspects except in the debt-equity profile. Company X has 14% debentures worth Rs. 25,00,000 whereas company Y does not have any debt. Both compan

Write a note on underwriting, Question 1 Explain the components of Indian ...

Question 1 Explain the components of Indian Financial System Question 2 Write a short note on Primary and Secondary markets Question 3 Explain the Investment optio

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd