8 of 8 (0 complete) Score: 0 of 1 pt P13-29 (similar to) HW Score: 0% E estion You work for Microsoft Corporation (ticker MSFT), and you are considering whether to develop a new software product. Then of the investment is the same as the risk of the company a. Using the data in Table 13.1 and in the table calculate the cost of capital using the FFC factor specification the current risk free rate is 2.8% per year. b. Microsoft's CAPM bet over the same time period was 0.04. What cost of capital would you estimating the CAPM? a. Using the data in Table 13.1 and in the table calculate the cost of capital using the FFC factor specification if the current risk free reis 2.8% per year. The cost of capital using the FFC factor specification is found to two decimal places 0 Data Table 0 Data Table (Click on the following icon in order to copy its contents into a spreadsheet) (Click on the following icon in order to copy its content to a spreadsheet.) Estimated Factor Betas, 2007.2017 MSFT Factor OL FFC Portfolio Average Monthly Returnys, 1927-2018 Factor Portfolio Average Monthly Return (%) 95% Confidence Band (%) MKT SMB +0.19 0.43 PRIYR SMB -0.76 -0.29 HML 1021 0.62 PRIYR 0.03 Print Done nter your answer in the answer box and then click Check Answer. 0 Data Table 0 Data Table (Click on the following icon in order to copy its contents into a spreadsheet) (Click on the following icon in order to copy its contents who a spreadsheet) Estimated Factor Betas, 2007-2017 MSFT Factor OG FFC Portfolio Average Monthly Returns, 1927-2018 Factor Portfolio Average Monthly Return (%) 95% Confidence Band (%) MKT SMB +0.19 SMB -0.76 HML 1021 0.78 PRIYR 062 PRIYR 0.03 Done nter your answer in the answer box and then click Check Answer. 8 of 8 (0 complete) Score: 0 of 1 pt P13-29 (similar to) HW Score: 0% E estion You work for Microsoft Corporation (ticker MSFT), and you are considering whether to develop a new software product. Then of the investment is the same as the risk of the company a. Using the data in Table 13.1 and in the table calculate the cost of capital using the FFC factor specification the current risk free rate is 2.8% per year. b. Microsoft's CAPM bet over the same time period was 0.04. What cost of capital would you estimating the CAPM? a. Using the data in Table 13.1 and in the table calculate the cost of capital using the FFC factor specification if the current risk free reis 2.8% per year. The cost of capital using the FFC factor specification is found to two decimal places 0 Data Table 0 Data Table (Click on the following icon in order to copy its contents into a spreadsheet) (Click on the following icon in order to copy its content to a spreadsheet.) Estimated Factor Betas, 2007.2017 MSFT Factor OL FFC Portfolio Average Monthly Returnys, 1927-2018 Factor Portfolio Average Monthly Return (%) 95% Confidence Band (%) MKT SMB +0.19 0.43 PRIYR SMB -0.76 -0.29 HML 1021 0.62 PRIYR 0.03 Print Done nter your answer in the answer box and then click Check Answer. 0 Data Table 0 Data Table (Click on the following icon in order to copy its contents into a spreadsheet) (Click on the following icon in order to copy its contents who a spreadsheet) Estimated Factor Betas, 2007-2017 MSFT Factor OG FFC Portfolio Average Monthly Returns, 1927-2018 Factor Portfolio Average Monthly Return (%) 95% Confidence Band (%) MKT SMB +0.19 SMB -0.76 HML 1021 0.78 PRIYR 062 PRIYR 0.03 Done nter your answer in the answer box and then click Check