Company is Berger Paints India Pvt Ltd

1. Take historical monthly adjusted closing prices for the company from yahoo finance for 3- 5 years (Ignore 2020 data)

2. Calculate the monthly returns Ln(Pt/Pt-1)

3. Take historical monthly adjusted closing prices for market index (NIFTY50 or SENSEX) and calculate monthly returns

4. Run a regression with the dependent variable as company monthly returns and the independent variable as market returns

5. The beta (coefficient of market return) is the beta levered for the firm

6. Calculate the Cost of equity capital using the CAPM model. The risk-free rate can be taken as YTM of government bond; you can take the value as 4.9% p.a. Market risk premium can be taken as 8%

7. Take comparable companies in a similar industry as the listed firm you are analyzing (at least 2)

8. Using the regression analysis, calculate the beta equity of the two companies.

9. Take the debt to equity ratio as the book value of debt/ market value of equity for these companies

10. Using unlevering and levering of beta, estimate the beta equity for listed firm X

11. Calculate the Cost of equity capital for the company X using this approach and taking the risk-free rate and market risk premium, as mentioned before (Point 6)

Note: Submit an excel sheet with all the workings as an Assignment submission.