4. Answer the following questions about cost of capital estimation: (20 points total) a. Suppose you are estimating the cost of capital for a company in Japan today, what would you use as the proxy for the riskfree rate (R.)? Specify the issuer, currency, and maturity of the riskfree rate security. Also provide the rate quote of this riskfree rate security as of the date you check for the rate. (5 points) b. Report the most recent quotes of U.S. Treasury securities (please cite the date on which you pull the quotes and from which source) across the maturity of 3 months to 30 years. If you are considering evaluating a company in the U.S., which Treasury rate would you use to proxy for the risk-free rate in the cost of capital calculation? (5 points) c. Report the most recent quotes of Australian government securities (please cite the date on which you pull the quotes and from which source) across the maturity of 2 years to 15 years. If you are considering evaluating a company in Australia, which government bond rate would you use to proxy for the risk-free rate in the cost of capital calculation? (5 points) d. Report the most recent quotes of United Kingdom government securities (please cite the date on which you pull the quotes and from which source) across the maturity of 2 years to 30 years. If you are considering evaluating a company in the U.K., which government bond rate would you use to proxy for the risk-free rate in the cost of capital calculation? (5 points) 4. Answer the following questions about cost of capital estimation: (20 points total) a. Suppose you are estimating the cost of capital for a company in Japan today, what would you use as the proxy for the riskfree rate (R.)? Specify the issuer, currency, and maturity of the riskfree rate security. Also provide the rate quote of this riskfree rate security as of the date you check for the rate. (5 points) b. Report the most recent quotes of U.S. Treasury securities (please cite the date on which you pull the quotes and from which source) across the maturity of 3 months to 30 years. If you are considering evaluating a company in the U.S., which Treasury rate would you use to proxy for the risk-free rate in the cost of capital calculation? (5 points) c. Report the most recent quotes of Australian government securities (please cite the date on which you pull the quotes and from which source) across the maturity of 2 years to 15 years. If you are considering evaluating a company in Australia, which government bond rate would you use to proxy for the risk-free rate in the cost of capital calculation? (5 points) d. Report the most recent quotes of United Kingdom government securities (please cite the date on which you pull the quotes and from which source) across the maturity of 2 years to 30 years. If you are considering evaluating a company in the U.K., which government bond rate would you use to proxy for the risk-free rate in the cost of capital calculation? (5 points)
