Survey Estimates of the Cost of Capital and the Growth Rate of the Design Models Based on Forecasts of Earnings

Authors

1 Assistant Professor of Accounting, Isfahan University

2 Master of Accounting in Isfahan University

Abstract

Of the criteria that have been paid attention by the investors are the cost of capital and the growth rate of the companies and corporations. To focus these criteria, the objective of the present research is to propose a model for evaluating the capital cost and growth rate.
This study would be categorized as a practical and descriptive research for its objective, nature and method respectively.The sampling method used in this study is the systematic elimination method in which 79 accepted companies and corporations in the Securities Exchange Commission of Tehran were selected as a sample in the interval of 1379- 1391.
In order to evaluate and compare the cost of credits and growth rate of the companies and corporations with the real values, the simple and extended models were used. The t-test results revealed that there is no possibility to evaluate the cost of capital, although, the growth rate can be obtained by the aid of extended model coefficients.

Keywords