Question
Look up the current risk-free rate (the yield on a 10-year US Treasury bond will work). Now make an estimate of the market rate of
Look up the current risk-free rate (the yield on a 10-year US Treasury bond will work). Now make an estimate of the market rate of return (an estimate can be found on Damodarans website look at the homepage at the bottom you will see his estimate for the current equity risk premium). You could also use another source. Be sure to cite your sources. Also, look up beta for Netflix, Inc. (NFLX). Report all information that you found and its source and date. Use all of this information to estimate the cost of equity for Netflix. Is this a reasonable estimate? Why or why not?
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