Practitioners should carefully choose their country risk model because current models produce a wide range of cost of equity estimates, according to a paper. A case study of reference firms in emerging markets reveals considerable spreads in the models’ estimates of up to 25.6 percentage points for individual firms and 15.4 percentage points on average. Individuals from the Karlsruhe Institute of Technology (KIT), DZ Bank AG, Handelshochschule Leipzig (HHL), and Deutsche Bank AG wrote the paper, “Country Risk—Cost of Equity Measurement: Methodologies and Implications.”