Contour plowing. Contour ploughing or contour farming is the farming practice of ploughing and/or planting across a slope following its elevation contour lines. These contour lines create a water break which reduces the formation of rills and gullies during times of heavy water run-off; which is a major cause of top soil loss and soil erosion.
The ex-ante cost of equity capital is the core fac-tor in financial decision making such as equity valuation or project evaluation. As the ex-ante cost of equity capital is not observable, the ex-post realized stock return has been utilized as an indirect measure of the ex-ante cost of equity capital.However, the realized stock return has been proven as a noisy proxy for the ex-ante cost of eq-uity (Fama and French, 1997; Elton, 1999).sia-Pacific Journal of Financial Studies (2008) v37 n4 G  which suggests that the ICOE may reduce the noises in the ex-post stock returns as a proxy for the ex-ante cost of equity capital. Table 2 also reports the correlations among risk proxies.
Abstract. We examine the empirical relationship between estimates of ex ante cost of equity and risk for a sample of individual emerging market equities for the period 1990â2000. The ex ante cost of equity estimates are obtained using the residual income valuation model.As in studies that use mean realized returns on emerging market indexes, a measure of total risk (return volatility) is the most significant risk factor in explaining ex ante expected return estimates.he ex ante risk premium is obtained from the ex ante expected return estimate by subtracting the corresponding 10-year Treasury bond yield. Table 1 shows the average ex ante cost of equity estimates by year and Table 2 by country.