Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

B. S. R. Rao , Umesh Naik

Abstract

As a recurrent theme in the investigation of the existence of internationl portfolio diversification. (Grubel, 1968), several studies have sought to examine the extent of the inter-temporal relationship amongst national stock price indices in an effort to discover the degree to which national capital markets are integrated (Granger and Morgenstern, 1910, Hilliard, 1979, Agmon 1974).

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B. S. R. Rao

Abstract

The estimation of cost of capital to any firm or enterprise is crucial in determining the cut-off point while appraising prospective investment opportunities or for choosing the discount rate for the valuation of cash flows. The term 'cost of capital' may be defined as the minimum prospective yield rate that a proposed investment in real assets has to offer to make it worthwhile from the standpoint of the current owners of the firm.

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