Identify Rf. See Exhibit 4. Based on the data provided which do you think is the most appropriate Rf to use in the Capital Asset Pricing Model. Why? Rf = X Why? You can assume that Market Risk Premium is 4.4%. Using the information above, calculate the cost of equity using the CAPM. Cost of Equity = Which did you use? Why? When forecasting the WACC are you going to use the Cost of Equity from the DDM or CAPM? Why?

Date	1 mo	3 mo	6 mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr	20 yr	30 yr
10/1/2018	2.13	2.23	2.4	2.6	2.82	2.9	2.96	3.04	3.09	3.18	3.24