Capital Asset Price Model (CAPM): Briefly discuss CAPM from the standpoint of investors and managers. Now calculate
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Capital Asset Price Model (CAPM): Briefly discuss CAPM from the standpoint of investors and managers. Now calculate your firm's CAPM. It is recommended that you use treasury security as the risk free rate - you pick which one (It would probably be best to use the 5 or 10 year Treasury note). Beta can be either calculated or you can use one from the internet (provide reference). Yahoo finance lists the most current beta under "key statistics." As for the risk for the market, search the most recent. Usually it is around 5% to 6%. PART V (Submit only Part V in Week 9)
- Weighted Average Cost of Capital (WACC): Find the most recent capital structure. With your best effort, calculate the WACC. Use the YTM found in the bond rating section for cost of debt. Do not forget to account for taxes. It is suggested that you use a 35% tax bracket. Use your CAPM for the cost of stock. You can use Morningstar for the weight of the capital structure.
- Overview: Provide a summary and overview of your company. What are the firm's major weaknesses and strengths? Given what you see with just these numbers, would you invest money in this company?
Waste Management is what has been used.
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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