Friday, 12 June 2015

Please use the following (hypothetical) information to calculate the “cost of equity” by using the CAPM model:

Please use the following (hypothetical) information to calculate the “cost of equity” by using the CAPM model:


RE = RF + Beta(RM – RF)


Nike = 20% + 0.80(7.50% – 20%) =


Sony = 20% + 1.40(8.50% – 20%) =


McDonald’s = 20% + 0.30(9.50% – 20%) =



Please use the following (hypothetical) information to calculate the “cost of equity” by using the CAPM model:

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