ISSN: 2265-6294

Building the proposed Fama and French Six-Factor Model FF6M-DLE by adding the indebtedness factor and its reflection on the fair value of common stock

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Raghad Jamal Abbas,Walaa Ismael Alnassar

Abstract

The research aims to determine the required rate of return according to the Fama and French five-factor model, after strengthening it by adding the indebtedness factor to build the Fama and French six-factor model FF6M-DLE. The effect of the indebtedness factor on the company's profitability and the real value of the ordinary shares calculated according to the (equivalent ascertainment) model and its suitability with the company's situation, and an analysis of the fluctuation between the market value and the real value of the ordinary stocks.

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