Question
For Nestle -a)Estimate beta (using the monthly stock prices of the last 5 years to estimate the beta, present the estimation in a graph, and
For Nestle -a)Estimate beta (using the monthly stock prices of the last 5 years to estimate the beta, present the estimation in a graph, and interpretation of what the beta of Nestle company implies the explanation behind the choice of the risk-free rate
b) Estimation of the equity market risk premium providing the calculation of the risk premium and the risk-free rate of interest
c) Computation of Nestles estimated cost of common equity using CAPM. For comparison of your estimated cost of common equity, compute the cost of common equity using the dividend discount model as well, in this case, show the estimation of the upcoming dividend and growth in dividends (provide the value, source, for all your computations).
d) Estimation of cost of debt(provide the value as well as a short explanation behind 2 choices of your value)
e) Estimation of the WACC (describing in detail how you got the target capital structure weights, including the sources and dates of when the information was gathered.
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