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Scientific journal Vestnik NSUEM

2013 year, number 2

USE OF CAPITAL ASSETS PRICING MODEL (CAPM) AT DETERMINATION OF PRICE OF EQUITY CAPITAL (SMALL AND MEDIUM BUSINESS IN RUSSIA)

E.V. Shcheglova
Keywords: small and medium business, price of capital, CAPM, model parameters

Abstract

The necessity for determination of a discount rate at the determination of investment projects efficiency arises often in the process of operation of business. The use of weighted average cost of capital is one of the options of determination of a discount rate. The article considers the possibility of use of Capital assets pricing model (CAPM) for small and medium businesses at the determination of price of equity capital; possible options of determination of model parameters with regard to specifics of the given economy sector are described.