Choose a publicly traded company.$-$ NIKE Corporation

Determine its beta from a published source.

Hint: Use Yahoo!Finance $$ or NASDAQ $$ to find the company's beta.

Find the company's financial information by putting the company's name in the search bar.

Calculate the company's cost of equity using the CAPM formula and the short$-$term risk$-$free rate assumptions.

Use $8\mathrm{.}5$ percent as the market risk premium.

Use the current $90-$day yield $(3-$month yield$)$ on U$.$S$.$ Treasuries as the risk$-$free rate. Hint: Use the U$.$S$.$ Department of the Treasury's

Resource Center $,$ to look up current $90-$day $(3-$month$)$ Treasury Yield Curve Rates.

Provide your calculations in a table in your post.

Calculate the company's cost of equity using the CAPM formula and the long$-$term risk$-$free rate assumptions.

Use $7\mathrm{.}0$ percent as the market risk premium

Use the current $20-$year yield on U$.$S$.$ Treasuries as the risk$-$free rate. Hint: Use the U$.$S$.$ Department of the Treasury's Resource Center

$$ to look up current $20-$year Treasury Yield Curve Rates.

Provide your calculations in a table in your post.

How Do I Insert a Table Using the Rich Content Editor? $$

Compare the two different conclusions of the company's cost of equity based on your two calculations $($based on short$-$term and long$-$

term risk$-$free rates$).$

Hypothesize $($rather than calculate$)$ how the different cost of equity estimates would impact the calculation of the weighted average

cost of capital for your selected company.

Explain the reasoning of your hypothesis. In your explanation, include a discussion of the company's beta and the amount of debt the

company has currently.

Ask at least one question about market risk premiums used in the CAPM formula.