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How was R calculated with the below question? 1. We will compute the cost of equity for Ford Motor Company using two different approaches -
How was "R" calculated with the below question?
1. We will compute the cost of equity for Ford Motor Company using two different approaches - the DCF model and the CAPM. (30 points) Part a. What is Ford's cost of equity if the T-bill rate is 2.5%, and the market return is 16%? Please estimate beta value for the firm with 5-year monthly data (1/1/2014-12/31/2018) using data from yahoo finance website. (20 points) Conduct regression analysis and paste your Summary Output in the box to your right. Keep four decimal points.
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