Cost of capital and investment in a non-interest economyh
Author
Source
Issue
Vol. 4, Issue 1 (30 Jun. 1996), pp.35-47, 13 p.
Publisher
Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)
Publication Date
1996-06-30
Country of Publication
Saudi Arabia
No. of Pages
13
Main Subjects
Abstract EN
It has been contended that Islamic banks and financial institutions continue to use the interest rate mechanism as a benchmark for procurement and placement of funds because in the absence of an interest rate mechanism there is no benchmark against which the cost of capital can be measured and the efficiency of investment projects evaluated.
This paper proposes a method by which the cost of capital can be measured without resort to a fixed and predetermined interest rate.
The suggested procedure is simple and is based on the well-known Tobin’s q and can be used in the private as well as in the public sector to obtain benchmark in reference to which investment decisions can be made
American Psychological Association (APA)
Mirakhur, Abbas. 1996. Cost of capital and investment in a non-interest economyh. Islamic Economic Studies،Vol. 4, no. 1, pp.35-47.
https://search.emarefa.net/detail/BIM-207761
Modern Language Association (MLA)
Mirakhur, Abbas. Cost of capital and investment in a non-interest economyh. Islamic Economic Studies Vol. 4, no. 1 (Jun. 1996), pp.35-47.
https://search.emarefa.net/detail/BIM-207761
American Medical Association (AMA)
Mirakhur, Abbas. Cost of capital and investment in a non-interest economyh. Islamic Economic Studies. 1996. Vol. 4, no. 1, pp.35-47.
https://search.emarefa.net/detail/BIM-207761
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p.45-47
Record ID
BIM-207761