Asume that riskfree rate rf 35 expected market return rm


Question 1. Applying CAPM

Assume that Riskfree rate (Rf) = 3.5%, Expected market return (Rm) = 9.5%. Compute the Cost of Equity (Re) for each of the following companies. Provide brief interpretations of your findings. (Note that you can find Betas of these companies using the attached link to finance.yahoo.com):

1. Procter & Gamble Co. (PG) https://finance.yahoo.com/q/ks?s=PG+Key+Statistics

2. Apple (AAPL) https://finance.yahoo.com/q/ks?s=AAPL+Key+Statistics

3. Tiffany & Co. (TIF) https://finance.yahoo.com/q/ks?s=TIF+Key+Statistics

4. Microsoft (MSFT) https://finance.yahoo.com/q/ks?s=MSFT+Key+Statistics

5. Las Vegas Sands Corp. (LVS) https://finance.yahoo.com/q/ks?s=LVS+Key+Statistics

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Finance Basics: Asume that riskfree rate rf 35 expected market return rm
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