Question
6. Calculate the Cost of equity capital using the CAPM model. The risk-free rate can be taken as YTM of government bond; you can take
6. Calculate the Cost of equity capital using the CAPM model. The risk-free rate can be taken as YTM of government bond; you can take the value as 4.9% p.a. Market return can be calculated as annualized NIFTY50 or SENSEX returns (take average of monthly NIFTY50 or SENSEX returns and calculate [(1+average monthly returns)^12]-1] to calculate the market returns. Ignore 2020 and 2021 data.
10. Using unlevering and levering of beta, estimate the beta equity for listed firm X
11. Calculate the Cost of equity capital for the company X using this approach and taking the risk-free rate and market risk premium, as mentioned before (Point 6) Submit an excel sheet with all the workings as an Assignment submission
How to calculate for BPCL? BHARAT PETROLEUM CORPORATION LTD. Please help
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