Resum
In most emerging market valuations a country risk premium is added to the CAPM discount rate of an equivalent investment in a developed market. However, this is not only a flawed procedure but also it is extremely difficult to gauge how country risk might affect the discount rate. In this paper a practical method is proposed to appraise country risk mainly through its impact on projected cash flows, leaving its possible effect on the discount rate as a secondary consideration.
Idioma original | Anglès |
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Pàgines | 50-63 |
Publicació especialitzada | GCG: Revista de Globalización, Competitividad y Gobernabilidad = GCG: Journal of Globalization, Competitiveness and Governability = GCG: Revista de Globalização, Competitividade e Governabilidade |
Estat de la publicació | Publicada - 1 de des. 2008 |
Publicat externament | Sí |