Factors affecting the implicit cost of capital estimates and their impact on selecting the most appropriate model Experimental study

Abstract

In this paper we want to evaluate the implicit cost of capital in order to find the most appropriate model for determining the risk premium and thus the implicit cost of capital, through several factors affecting the choice of the most appropriate model in the Iraq Stock Exchange for a sample of banks for the period from 2006 to 2015 in order to know which of the models It is the most successful in the future. After evaluating four models to estimate the implicit capital cost, the PEG model was the most efficient in determining the risk premium in the Iraq Stock Exchange.