股权成本计算范例.docVIP

A Tryout on Cost of Equity(Xi An Tourism) Choosing model Due to the complication of other models, we decided to use the CAPM as our model dealing with the problem(although it makes the most restrictive assumptions). Equation E(R) = Rf + ? (Rm- Rf) (1) We are going to discuss the three parts one by one. 1.A riskfree rate(Rf) We decided to choose the seven year T-bill as our riskfree rate for the following reasons: For an investment to be riskfree, it has to have no default risk. PRC is an AA- country, so we can assume that she has no default risk. The seven