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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.

  1. Collect Intels stock price data (monthly or weekly, 3-5 years), calculate returns.
  2. Collect S&P 500, calculate returns (Yahoo Finance or any other reputable source)
  3. Run regression in Excel. Identify slope.
  4. Compare it to the published Intel's beta, specify the source of published beta.
  5. 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.
  6. 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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