CANTV-TELMEX: Which is the appropriate discount rate? - August, 2009
- Appreciate the difficulties of estimating cost of capital in emerging markets, meeting the market requirements and dealing with the lack of consensus theories for this problem.
- Evaluate different methodologies for adapting to emerging markets the theories originally designed for the United States stock markets, such as the CAPM.
- Dealing with the country risk impact on the cost of capital in an emerging market where there is divergence between the perception of political risk and sovereign risk (or paymentcapacity).