Cost of equity capital = risk-free interest rate+β * (market portfolio average rate of return-risk-free interest rate);
Stock market value = net profit/cost of equity capital; Debt capital ratio = debt market value/total market value;
Cost of equity capital = risk-free interest rate+β * (market portfolio average rate of return-risk-free interest rate).
The company value analysis method, also known as the comparative company value method, is a method to determine the best capital structure by calculating and comparing the total market value of companies under various capital structures.