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Please explained in words how the Beta and R(m) was solved for this problem. Cost of debt Risk-free rate of Return Beta & R(m) CAPM
Please explained in words how the Beta and R(m) was solved for this problem.
Cost of debt Risk-free rate of Return Beta & R(m) CAPM Weighted Avg COE WACC Date SBUX Pric S&P 500 prSBUX year S&P 500 vearly return SUMMARY OUTPUT 12/1:01 3.963727 1148.08 12/1/02 4.24046 879.82 0.0652601 -0.304903 Regression Statistics 12/1/03 6.89959 1111.92 0.3854041 0.208738 Multiple R 0.708 769605 12/1/04 12.975226 1211.92 0.468249 0.0825137 R Square 0.502354353 12/1:05 12.488343 1248.29 -0.038987 0.0291359 Adjusted R Squbk47308108 The Beta estimate for the CAPM model = X variable 1 = 1.42548 12/1:06 14.739659 1418.3 0.1527387 0.1198689 Standard Error0.297646154 1211:07 8 518273 12/1/07 8.518373 1468.36 -0.730337 0.0340925 Observations 19 12/1/08 3.936678 903.25 -1.163848 -0.625641 11100 506124 9.596174 12/1/09 4.596174 1115.1 0.5897659 01 ROOS2 0.18998.5 ANOVA 1957 20100901128301 12/1/10 13.553778 1257.64 0.2919927 0.1133393 df SS VAS F Significance F 1912 19 702508 12/1/11 19.702528 12576 03120797 000032 1257.6 0.3120792 -0.0000.52 Regression I 1.5203355 1.5203355 17.160853 0.0006811 12/1/12 23.303812 121112 43.30312 1426.19 0.1545363 0.1182101 Residual 17 1.506085 0.0885932 12/1/13 34.514545 1848.36 0.3248118 0.2284025 Total 18 3.0264205 19 12/1/14 266AC 36.66946 2058.9 0.0587659 0.1022585 2043.94 0.3252875 -0.007319 Coefficients idard Error t Stat P-value Lower 95Upper 95% pwer 95.0%pper 95.0% 12/1/16 5101733 2238.83 -0.06529 0,0870499 Intercept 0.0312752074 0.069942 0.447159 0.6604051 -0.11629 0.17884 -0.11629 0.17884 12/1/17 53.752125 2673.61 0.0508779 0.1626191 X Variable 1.425480403 0.3441057 4.142566 0.0006811 0.6994809 2.1514799 0.6994809 2.1514799 12/1/18 61.67308 2506.85 0.1284346 -0.066522 12/1/19 85.778145 3230.78 0.2810164 0.2240728 R(m) = Expected market return 12/1:20 106.52649 3756.07 0.1947717 0.139851 R(m) - Average of the S&P 500 return for the 20 years R(m) 0.04399 or 4.399 % 12/1/15 54.348274Step by Step Solution
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