We now need to estimate the historical market risk premium. Go to Yahoo! Finance, and download the

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We now need to estimate the historical market risk premium. Go to Yahoo! Finance, and download the monthly historical prices for the FTSE 100 index for the last five years. Calculate the monthly returns, take the average, and multiply this by 12 to get the annualized historical return on the FTSE 100.

What is the historical market risk premium for the UK? Using the historical market risk premium, what is Spirent’s cost of equity using the CAPM?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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