Page 34 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 34 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629%uf0b7 If investors can invest locally or globally, this means that the cost of capital can be calculated using the local (Loc) or global (W) market portfolio (M) in the CAPM model as follows:1- CIB Egypt local beta = (0.8%u00d70.2%u00d70.18) = 0.8890.182Using the CAPM paradigm, the equity cost of capital of CIB Egypt (the required rate of return) %ud835%udc45%ud835%udc45%ud835%udc36%ud835%udc36%ud835%udc3c%ud835%udc3c%ud835%udc35%ud835%udc35 = 8% + 0.889( 15% %u2212 8%) = 14.22%2- The world beta of CIB (GDR) = (0.25%u00d70.2%u00d70.12) = 0.4170.122Using the CAPM paradigm, the equity cost of capital of CIB GDR (the required rate of return) %ud835%udc45%ud835%udc45%ud835%udc36%ud835%udc36%ud835%udc3c%ud835%udc3c%ud835%udc35%ud835%udc35 = 8% + 0.417( 12% %u2212 8%) = 9.68%- The equity cost of capital of CIB decreases from 14.22% to 9.68%The crosslisting of CIB shares will increase the share prices and the investment profits.Factors that affect the returns of the international equity markets13: The most important factors that may affect the international equity returns are macroeconomic variables that influence the overall economic environment of the firm that issues security, exchange rate changes between the currencies, and the industrial structure of the country in which the firm operates.13 --Eun, C. S., & Resnick, B. G. (2012). International financial, edition Six, McGraw Hill.