Calculating CAPM and WACC for a Real Firm

RE: The calculation of stock values using the capital asset pricing model (CAPM). What is a CAPM model? Below is a list of betas for a selection of stocks. twofirms from that list and state whether the betas are what is to be expected. Calculate the returns based on the CAPM model.

Table 6-1 Beta Coefficients for Some Actual Companies Stock (Ticker Symbol) Value Line Yahoo! Finance Amazon.com (AMZN) 1.1 1.41 Apple (AAPL) 0.9 0.96 Coca-cola (KO) 0.7 0.81 Empire District Electric 0.7 0.38 (EDE) Energen Corp. (EGN) 1.4 1.22 General Electric (GE) 1.4 1.34 Google (GOOG) 1.0 1.07 Microsoft Corp. (MSFT) 1.0 0.81 Procter & Gamble (PG) 0.7 0.82 Sources : www.valueline.com and finance.yahoo.com, March 2015. For Value Line, enter the ticker symbol. For Yahoo! Finance, enter the ticker symbol. When the results page comes up, select Key Statistics from the left panel to find beta