As a financial manager, which method do you advice me to use in determining the cost of equity for firms?

Question

Tamer Elbeshbishy · Answer

In determing and managing the cost of capital you should take into yourconsideration the follwoing items;

1- the Net Prest Value of the project

2- The Internal Rate Of Returen

3- The Pay-backPeriod for the project

4- The Current intrsat reate at bank

5-The Internal grow percentage of our business

6- The related risk of each type of funding resource.

Thank You for the invitation

Krishnan Kallippal · Answer

I will advice CAPM instead of DDM