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please help! - You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past retums: a.

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- You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past retums: a. What was XYZ's average historical return? b. Compute the market's and XYZ's excons returns for each year. Estimate XYZ's beta c. Estimate XYZ's historical alpha, d. Suppose the current risk-froe rate is 3%, and you expect the market's return to be 8% Use the CAPM to estimate an expected return for XYZ Corp.'s stock e. Would you base your estimate of XYZ's equity cost of capital on your answer in part (a) or in part (d)? a. What was XYZ's average histof XYZ's average historical retum w Data Table b. Compute the market's and XYZ The market's excess return for 20 (Click on the icon located on the top-right comer or the data table below in order to copy its contents into a spreadsheet.) The market's excess roturn for 20 Year Risk-free Return Market Return XYZ Return 2011 3% 6% 10% XYZs excess return for 2011 was 2012 -37% -45% XYZs excess return for 2012 was Estimate XYZ's beta Print Done XYZS bet is (Round to two decimal places) c. Estimate XY2's historical alpha, XYZ historical alpha was 7% (Round to one decimal place)

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