Description

Review the Excel file "Example Estimated Required Rate of Return on an Investment" first. Then use the

Excel file: "Estimated Required Rate of Return On An

Investment".

Look up the stock information for three companies

that you are interested in and determine what the

rate of return you would require if you purchased

these stocks.

Refer to the textbook and the section titled

"Calculating a Stock's Potential Rate of Return Takes

Five Steps" and Equation 14.1.

Save the file using your first and last name in the file

name and attach to Canvas.

For the beta value mentioned in the spreadsheet,

cite which source below you used to determine that

beta value. Also cite your source for the T-Bill rate.

Remember which T-Bill to use!

Resources:

Ycharts.com

Yahoo! Finance

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EXAMPLE_Estimated Required Rate... Sheet2 Sheet3 This is an EXAMPLE of the Assignment Be sure to use the current T-Bill Rate (Risk free rate) Estimated Required Rate of Return On An Investment Ford Motor Company Insert Your figures Amazon Insert Your figures Insert Your figures Sheet1 Equation 14.1 (page 422) Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Assume Market Risk is 8.0% Example using Sept. 29, 2016 figures Disney 0.260% 1.22 8.000% 10.020% 0.260% 1.64 8.000% 13.380% 0.260% 1.45 8.000% 11.860% Estimated Required Rate of Return... Sheet2 Sheet3 Estimated Required Rate of Return On An Investment You cannot use the companies that were used in the example Insert Your figures Insert Your figures Insert Your figures Sheet1 Equation 14.1 (page 422) Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Assume Market Risk is 8.0% 0.260% 1.32 8.000% 10.820% 0.260% 1.32 8.000% 10.820% 0.260% 1.32 8.000% 10.820% EXAMPLE_Estimated Required Rate... Sheet2 Sheet3 This is an EXAMPLE of the Assignment Be sure to use the current T-Bill Rate (Risk free rate) Estimated Required Rate of Return On An Investment Ford Motor Company Insert Your figures Amazon Insert Your figures Insert Your figures Sheet1 Equation 14.1 (page 422) Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Assume Market Risk is 8.0% Example using Sept. 29, 2016 figures Disney 0.260% 1.22 8.000% 10.020% 0.260% 1.64 8.000% 13.380% 0.260% 1.45 8.000% 11.860% Estimated Required Rate of Return... Sheet2 Sheet3 Estimated Required Rate of Return On An Investment You cannot use the companies that were used in the example Insert Your figures Insert Your figures Insert Your figures Sheet1 Equation 14.1 (page 422) Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Company Name: Current T-Bill Rate Beta Market Risk Estimated Required Rate of Return Assume Market Risk is 8.0% 0.260% 1.32 8.000% 10.820% 0.260% 1.32 8.000% 10.820% 0.260% 1.32 8.000% 10.820%