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3. A screenshot from bankofcanada.ca is available for TELUS in the appendix of this case file. Using the most recent Treasury Bill yields, assuming a

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3. A screenshot from bankofcanada.ca is available for TELUS in the appendix of this case file. Using the most recent Treasury Bill yields, assuming a 4 percent market risk premium, what is the cost of equity for TELUS using CAPM? You now need to calculate the cost of debt for TELUS. In the bond market today, there are three TELUS's bonds trading in the market: Issuer Time To Maturity Par value Book Price Coupon Rate YTM Value (million) TELUS Corporation 28 YEARS $ 100 $ 102.90 4.85% $ 580.14 TELUS Corporation 9 YEARS $ 100 $ 104.80 3.75% $ 6,005.12 TELUS Corporation 11 YEARS $ 100 $94.50 2.80% $4,596.74 T BANK OF CANADA L. BANQUE DU CANADA Selected Treasury Bill Yields Weekly: Tuesday Treasury bill auction - average yields - 3 month GRAPH PERIOD: 15 March 2016 - 14 March 2017 0.56 0.54 0.52 0.50 0.48 0.46 0.44 5 Apr 2016 9 Aug 2016 1 Nov 2016 13 Dec 2016 20 Sep 2016 24 Jan 2017 7 Mar 2017 17 May 2016 28 Jun 2016 Date Yleld 2017-03-14 2017-03-07 0,50 2017-02-28 - 2017-02-21 0.48 2017-02-14 - 2017-02-07 0.47 3. A screenshot from bankofcanada.ca is available for TELUS in the appendix of this case file. Using the most recent Treasury Bill yields, assuming a 4 percent market risk premium, what is the cost of equity for TELUS using CAPM? You now need to calculate the cost of debt for TELUS. In the bond market today, there are three TELUS's bonds trading in the market: Issuer Time To Maturity Par value Book Price Coupon Rate YTM Value (million) TELUS Corporation 28 YEARS $ 100 $ 102.90 4.85% $ 580.14 TELUS Corporation 9 YEARS $ 100 $ 104.80 3.75% $ 6,005.12 TELUS Corporation 11 YEARS $ 100 $94.50 2.80% $4,596.74 T BANK OF CANADA L. BANQUE DU CANADA Selected Treasury Bill Yields Weekly: Tuesday Treasury bill auction - average yields - 3 month GRAPH PERIOD: 15 March 2016 - 14 March 2017 0.56 0.54 0.52 0.50 0.48 0.46 0.44 5 Apr 2016 9 Aug 2016 1 Nov 2016 13 Dec 2016 20 Sep 2016 24 Jan 2017 7 Mar 2017 17 May 2016 28 Jun 2016 Date Yleld 2017-03-14 2017-03-07 0,50 2017-02-28 - 2017-02-21 0.48 2017-02-14 - 2017-02-07 0.47

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