Cost of Equity (Common Stock)

oBetafrom Regression and two Betas from analysts

a)Beta Yahoo 1.14

b)Beta Valueline 1.20

c)Beta Regression 1.02

oBeta Chosen for CAPM and why

For my CAPM equation, I chose to work with only two of the betas since the beta using regression was not close enough to the others. Therefore, beta averaged = 1.17.

oCapital Assets Pricing Model (include how determined R_F and[ R_M or (R_M - R_F)]

oDiscounted Cash Flow (DCF) (only if dividends - include how determined)

oOwn-Bond-Yield-plus-Judgmental-Risk-Premium (include how determine risk premium)

Cost of Preferred Stock

Cost of Debt (make sure to include table that lists all bond issues with weighted average cost of debt)

Market Value of Debt (will have calculated above, but will need to add any longterm leases from balance sheet to get total market value of debt)

Market Value of Equity

Market Value of Preferred Stock

Value of Firm

Firm's Tax Rate (explain how determined)

Weight for Equity

Weight for Preferred Stock

Weight for Debt

WACC (Weighted Average Cost of Capital)

I.Assumptions

Including but not limited to R_F , R_M, RP_M (which =Rm - R_F), growth rate of dividends. This page should have a brief description of how you came up with the estimates with spreadsheets, etc. to be put in the appendix.