Calculate the excess returns for the stock and the S&P 500. What is the arithmetic average excess return for the S&P 500?

Regress the excess return on the stock on the excess return on the S&P 500. What is Visa's beta?

What is the cost of equity?

What is the cost of debt?

What is the company's weighted average cost of capital?

Intro Return statistics for Visa stock, the S&P 500 and the risk-free asset, Treasury bills, are given below: A B D 1 Year Visa S&P 500 T-bill 2 2014 0.06 0.13 0.035 3 2015 -0.15 -0.14 0.022 4 2016 -0.06 -0.06 0.015 5 2017 0.05 0.28 0.023 6 2018 0.14 0.08 0.028 7 2019 0.17 0.06 0.031 8 2020 0.04 0.05 0.034 92021 0.02 0.06 0.032 In addition, you have gathered the following data: A B 1 Current rf 0.031 2 Debt in 2020 15,820 million 16,650 million 864 million 3 Debt in 2021 4 Interest 2021 5 Stock price 6 # of shares 47.51 1,770 million 7 Tax rate 0.21 Intro Return statistics for Visa stock, the S&P 500 and the risk-free asset, Treasury bills, are given below: A B D 1 Year Visa S&P 500 T-bill 2 2014 0.06 0.13 0.035 3 2015 -0.15 -0.14 0.022 4 2016 -0.06 -0.06 0.015 5 2017 0.05 0.28 0.023 6 2018 0.14 0.08 0.028 7 2019 0.17 0.06 0.031 8 2020 0.04 0.05 0.034 92021 0.02 0.06 0.032 In addition, you have gathered the following data: A B 1 Current rf 0.031 2 Debt in 2020 15,820 million 16,650 million 864 million 3 Debt in 2021 4 Interest 2021 5 Stock price 6 # of shares 47.51 1,770 million 7 Tax rate 0.21