Question
Go to finance.yahoo.com and look up the information necessary so you can estimate the cost of equity for your company (The Walt Disney Company) .
Go to finance.yahoo.com and look up the information necessary so you can estimate the cost of equity for your company (The Walt Disney Company). First, find the current Treasury bill rate. Next, find the beta for your company. Using an implied market risk premium of 4% (estimated as of November 2018), what is the estimated cost of equity for your company? Next, using the analysts growth rate estimates for the next five years for your company, use the constant growth model to estimate the cost of equity for your company. Looking at these two estimates, what cost of equity would you use for the company. Explain your answer.
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