To estimate the cost of equity for Spirent Communications, go to www.reuters.com and enter the ticker symbol ‘SPT.L’. Follow the various links to find answers to the following questions. What is Spirent’s most recent share price?

What is the market value of equity, or market capitalization? How many shares of equity does Spirent have outstanding? What is the beta for Spirent? Now go to www.ft.com, follow the ‘Markets Data’

link and then the ‘Bonds and Rates’ link. What is the yield on 10-

year UK Treasury bonds?