Cost of Equity!

First, I would like to thank our amazing lecturer. You are really helping the whole world.

Just wanted to hear your views on how can someone come up with the cost of equity in a small economy where there is no stock market and you want to appraise a certain investment. The only data you can get is a risk free investment and the banks lending rate.

May be you work in a company which want to invest in a certain project. Which factors would you consider to come up with the cost of capital which you could use for the DCF.

Thanks