Wybrane metody szacowania kosztu kapitału własnego na rynkach międzynarodowych

Dariusz Zarzecki

Published : 2011-11-30

Vol. 38 (2011)

Selected Methods of Estimating International Cost of Equity

Dariusz Zarzecki

Abstract

Estimation of cost of equity for international markets is a developing area of theory and practice. The concept of the capital asset pricing model (CAPM) can be applied to the international market. To do so, the CAPM must be converted to a country-specific international format. The risk-free rate and beta are specific to the country being analyzed and the equity risk premium is calculated on a worldwide basis. Beta should be estimated using the world equity market as the market benchmark. The concept seems to be interesting and attractive but application is more complicated and difficult. The paper provides a review of the most popular and useful international cost of equity estimation methods - both CAPM and non-CAPM based models.(original abstract)

Keywords:

Company's costs, Costs estimation, Capital asset valuation, International market

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Zarzecki, D. (2011). Selected Methods of Estimating International Cost of Equity. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 38(38). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1371

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