Question
Calculate the industry average beta. Using the industry average beta, what is the cost of equity? Does it matter if you use the beta for
Calculate the industry average beta. Using the industry average beta, what is the cost of equity? Does it matter if you use the beta for Tesla or the beta for the industry in this case?
(please show calculations)
Tesla's Beta is 2.06
| Competitor | Beta |
| Ford Motor Company | 1.21 |
| General Motors | 1.36 |
| Honda Motor Company | 1.04 |
| Navistar | 2.09 |
| Oshkosh | 1.59 |
| PACCAR | 1.06 |
| Spartan Motors | 0.87 |
| Tata Motors | 2.16 |
| Toyota Motor Company | 0.69 |
| Wabco | 0.44 |
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
