Asian Journal of Multidimensional Research (AJMR)
  • Year: 2021
  • Volume: 10
  • Issue: 3

The testing of cost of capital using discounted cash methods

PhD, Department of Finance, Tashkent State University of Economics, Uzbekistan

*Email id: gelios_1985@yahoo.com

Online published on 1 May, 2021.

Abstract

This article describes the scientific and theoretical aspects of using the discounted cash flow method in evaluating cost of capital a joint stock companies as case in Uzbekistan. Additional to this, the discounted cash flows method was used to estimate the cost of capital JSC "Kokand Mechanical Plant" and "Qvartz”.In particular, based on the data of JSC "Kokand Mechanical Plant" and "Qvartz” was forecasted cash flow by the DCF model. It also identifies existing problems in using the method of discounted cash flows in the assessment of the capital value of the joint-stock company and ways to overcome them.

Keywords

Cost Of Equity, Cost Of Capital, Free Cash Flow, Discount Cash Flow, Terminal Value, Risk Free Rate, Beta, Debt, Weight Average Cost Of Capital