Question
Estimate the cost of capital for Eastman Chemical Company (Ticker: EMN) Cost of EquityCAPM Model Use 3.35% as the risk-free rate Use 7% as the
Estimate the cost of capital for Eastman Chemical Company (Ticker: EMN)
Cost of EquityCAPM Model
Use 3.35% as the risk-free rate
Use 7% as the market risk premium
Collect the past five year monthly prices for EMN and S&P 500 index
Calculate monthly returns
Use regression analysis to calculate Beta
Collect Yahoo Finance Beta
Estimate final Beta
Compute cost of equity using CAPM
DCF Model
Use Yahoo Finance to collect data
Calculate the cost of equity
Use the below table to complete the problem.
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Introduction To Personal Finance Beginning Your Financial Journey
Authors: Lance Palmer, John E. Grable
2nd Edition
1119797063, 978-1119797067
