Estimate the component cost of common equity using capm for


Weighted Average Cost of Capital. Find 2016 financial statements for Amazon.Com from UHV Mergent Online database, Yahool Finance, Google Finance, or other finance sources.

(1) Estimate the weights of capital (debt, preferred stock, and common stock) for the company.

(2) Estimate the before-tax and after-tax component cost of debt for the firm

(3) Estimate the component cost of preferred stock (if applicable) for the firm.

(4) Estimate the component cost of common equity using CAPM for the firm.

(5) Compute the firm's weighted average cost of capital (WACC). Discuss your findings.

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Financial Management: Estimate the component cost of common equity using capm for
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