Briefly describe how do the authors test the performance of their proposed methods.

Answer these questions with reference to the following article: https://doi.org/10.1016/j.ribaf.2016.07.028 1) What is the purpose of the authors? 2) Briefly describe the method proposed by Damodaran (2003), mentioned in the article to measure the cost of capital in emerging markets 3) How do

the authors test Damodaran’s regression approach and what is their conclusion? 4) Describe the ‘prospective-lambda’ method? 5) Describe the ‘revised-CAPM for emerging markets’. What are the advantages of this method? 6) Briefly describe how do the authors test the performance of

their proposed methods. 7) What are the consequences of underestimating/overestimating the cost of capital for firms operating in emerging markets. Provide a real-life example.