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Objective: calculate Intel's (Intel Corporation (INTC)) beta and cost of equity Most common way to estimate Beta is to use OLS regression. You can do
Objective: calculate Intel's (Intel Corporation (INTC)) beta and cost of equity
Most common way to estimate Beta is to use OLS regression. You can do it in Excel.
- Collect Intels stock price data (monthly or weekly, 3-5 years), calculate returns.
- Collect S&P 500, calculate returns (Yahoo Finance or any other reputable source)
- Run regression in Excel. Identify slope.
- Compare it to the published Intel's beta, specify the source of published beta.
- Compute Intels cost of equity using calculated Beta and published Beta. You will need to make decision on what numbers to use for risk-free rate and market risk premium.
- Turn in your data (stock price, returns), the results of your regression analysis, and comparison of estimated beta with the published value and cost of equity calculation.
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