1. Estimate the risk-free rate - Which financial instrument best measures the risk-free rate? - Disney operates in several geographical markets. What if those countries are not default-free entities. In this case, the sovereign bond yield will have a default spread component in it and not be risk-free. 2. Estimate the equity risk premium - Can we use a survey approach to measure the equity risk premium? You might want to try this research: Survey: Market Risk Premium and Risk-Free Rate used for 80 countries in 2023 by Pablo Fernandez, Diego Garca de la Garza, Javier Fernandez Acin :: SSRN - Estimate the historical equity risk premium in the United States. Your group is supposed to collect all the necessary data and try different time periods. - As Disney operates in several geographical markets, you might want to estimate the country risk premium. Estimate equity risk premium for a mature market. (If your preference is for a forward looking, updated number, you can estimate an implied equity risk premium for the US.) Come up with a generic and measurable definition of a mature market. Estimate the additional risk premium that you will charge for markets that are not mature. You have two choices: The default spread for the country, estimated based either on (1) sovereign ratings or (2) the CDS market. - You will have this table