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.
Cost of Equity. Cost of equity (also known as cost of common stock) is the minimum rate of return which a company must generate in order to convince investors to invest in the company's common stock at its current market price.It is alternatively referred to as required rate of return.ost of equity is an important input in common stock valuation under different models. Cost of equity is estimated using either the dividend discount model or the capital asset pricing model.