class handout chapter 4 Q1. Assuming risk-free rate of two percent and equity risk premium of six percent, estimate cost of equity capital for Chevron Corp. Selected industry data are below: industry Oil & integrated gas, levered beta debt/equity ratio tax rate 1.54 16.50% 8.14% The following information firm-level information is available: Chevron Corp $102.04 1,868,646,000 152,716 mln 4,928 mln 33,584 mln 80 mln 4,842 mln 132 mln Share price Shares outstanding Equity (deficit) Short-term borrowings/debt Long-term debt unlevered beta 1.33 Capital lease obligations Pre-tax income Current period tax For tax rate, use the highest of the actual corporate tax rate or industry average.

Q1. Assuming risk-free rate of two percent and equity risk premium of six percent, estimate cost of equity capital for Chevron Corp. Selected industry data are below: The following information firm-level information is available: For tax rate, use the highest of the actual corporate tax rate or industry average. Q1. Assuming risk-free rate of two percent and equity risk premium of six percent, estimate cost of equity capital for Chevron Corp. Selected industry data are below: The following information firm-level information is available: For tax rate, use the highest of the actual corporate tax rate or industry average