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FIRM FOR QUESTIONS : GRUBHUB Estimate beta using a simple average of the following two approaches Identify the firms published beta (Yahoo finance) Calculate the

FIRM FOR QUESTIONS: GRUBHUB

  1. Estimate beta using a simple average of the following two approaches
    1. Identify the firms published beta (Yahoo finance)
    2. Calculate the firms beta using regression
  2. Identify Rf (30 years T-Bonds)
  3. Research the consensus market risk premium
  4. Calculate the Return on Equity
    1. CAPM approach
    2. Dividend growth approach
  5. Calculate the Return on Debt
    1. Identify all outstanding debt issues and calculate the yield on those outstanding debts
    2. Research the firms credit rating and identify the yield on similar new issues
    3. Whats the firms average income tax rate
  6. Calculate the Return on Preferred debt
  7. Calculate the WACC

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