Mayanja, Abubaker B. and Legesi, Kenneth (2007): Risk and Return on Uganda's stock exchange. Forthcoming in: Capital Markets Journal
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Using data from 2003-2007, we calculate the systematic risk and cost of equity for firms listed on USE; Preliminary estimates show that nominal Cost of equity capital reduced over time from 63.24 percent (January 2005 to January 2006) to 18% (February 2006 to March 2007). The efficient frontier shifted below in the period considered to suggest a general lowering of expected returns on portfolios, re-affirming the notion that stock markets lead to reduction in the cost of funds; and thus a viable option to bank finance that at the moment is considered prohibitive with annual percentage rates of between 20-25.
|Item Type:||MPRA Paper|
|Original Title:||Risk and Return on Uganda's stock exchange.|
|English Title:||Cost Of Equity Capital and Risk on USE: Equity finance; bank finance, which one is cheaper?|
|Keywords:||Cost of equity capital, Beta, CAPM, Uganda Securities Exchange (USE)|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice; Investment Decisions
G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets
G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
|Depositing User:||Abubaker Mayanja|
|Date Deposited:||20. Dec 2007 11:39|
|Last Modified:||07. Jan 2014 19:45|
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