Now you need to estimate FVW$$s cost of equity. Once again, the problem is that it is a private company,so its equity returns are not directly observable. This means that you cannot use OLS regression to estimate FVW$$s beta directly. As before, you decide to follow a peer firm approach, using the same three comparison firms as before. Your plan is to estimate the equity beta for each of those firms, and

then to convert their equity betas into unlevered betas. Thereafter, you intend to calculate an average of the unlevered betas for the comparison firms, which you will use as a proxy for FVW$$s unlevered beta. Next, you plan to convert this proxy unlevered beta into an equity beta for FVW$,$ using its debt$-$ to$-$equity ratio. Finally, the estimated value for FVW$$s equity beta will be used to determine its cost of

capital.The worksheet Market Data contains monthly observations for the Interbank Overnight Cash Rate $($ONCR$),$ for the period from January $2015$ to April $2023,$ as well as monthly values for the S&P$/$ASX$300$ Index $($XKO$),$ and monthly share prices for Australian Vintage $($AVG$),$ Lark Distilling $($LRK$),$ and Treasury

Wine Estates $($TWE$).$ The cash rate data was downloaded from the website of the Reserve Bank ofAustralia, and everything else was download from Yahoo Finance. The index values and the share prices have been adjusted for dividends, so the price returns you calculate using that data will include the

effect of dividends.The worksheet Question $4$ provides a space for you to estimate FVW$$s cost of equity. Use the data in Market Data worksheet to estimate the equity betas for the three comparison firms. To unlever those betas, you will need the debt$-$to$-$equity ratios for the comparison firms. The easiest way to get them is

by clicking FINANCIALS tab on the Wall Street Journal page for each of the firms. This will take you to a page that presents the financial ratios for the firm.

Once you have obtained FVW$$s unlevered beta, as a weighted average of the unlevered betas of the comparison firms, and you have used FVW$$s debt$-$to$-$equity ratio to convert its unlevered beta back into a $($levered$)$ equity beta, you are ready to use the SML equation to calculate its cost of equity. For

this you will need estimates for the risk$-$free rate and the risk premium on the market portfolio in Australia. These values can be obtained from MarketRiskPremia.com. State your estimate for FVW$$s cost of equity in your report and explain you obtained it$.$ You should present the details of your beta estimates for the comparison firms, including scatter plots and graphs

of the best fit lines for the regressions, as part of your explanation. You should also provide the outputs from your regressions in your report and explain the regression results.

I would like you to find the estimate equity betas for comparison. use the market data provided for each firm and XRO. convert ONCR to monthly from annual rate to find excess stock return. find the montly return for every stock. Please complete the first $2$ steps properly to use CAPM to estimate beta coefficents using the market data provided.

provide working out and calculations, not explanation.