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can you answer this question for me as soon as possible and using excell sheet ? Revian, a firm that manufactures electric vehicles, has hired
can you answer this question for me as soon as possible and using excell sheet ?
Revian, a firm that manufactures electric vehicles, has hired you to estimate a beta, and a required return for its stock. Revian recently went public and lacks a history of stock returns. As such, they believe looking a similar companies can help them estimate a more reliable measure of beta. You have obtained the following equity betas for publicly traded firms that also produce electric vehicles. Because of its contracts with Amazon to purchase 100 million EVs over the next five years, Revian believes it can support a target capital structure weight of 55% debt and 45% equity. In calculating beta, it ignores taxes (ie tax rate =0 ) since profitability is not forecast to be achieved for six months. Information regarding peer industry competitors is shown below. \#1...What is your estimate of the Nio Asset beta? Show your answer to two decimal points - For example: 1.00. \#2...What is your estimate of the Asset beta that Revian should use in developing an estimate of their equity beta? The company believes a market value weighting is the best approach for weighting beta. Show your answer to two decimal points - For example: 1.00. \#3...What is your estimate of the Equity beta that Revian should use in its project analysis? The company believes a market value weighting is the best approach for weighting beta. Show your answer to two decimal points - For example: 1.00. \#4...At the current time, the 30 year Treasury bond is yielding 3.93\% and the Damodaran estimates a market risk premium of 5.6%. What is your estimate of Revian's current required return on equity? Show your answer to two decimal points. For example: 1.00. Show all of your steps for each answer in the associated worksheet tab in the Excel template
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