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Please solve it in context of APPLE STOCK PRICES Download 5 years of stock price data for your selected company as well as market (S&P500
Please solve it in context of APPLE STOCK PRICES
Download 5 years of stock price data for your selected company as well as market (S&P500 for example), calculate monthly returns. Cost of equity analysis 1. Estimate beta and discuss if your firm has higher market risk than the market 2. Estimate cost of equity using the beta you estimated from previous step 3. Compare cost of equity with the realized stock return. What do you find and how do you interpret the result? 4. How can you lower cost of equity for the firm(try to make some strategic advices)? Cost of debt 1. Estimate cost of debt for your firm 2. How can you lower cost of debt for the firm? Download 5 years of stock price data for your selected company as well as market (S&P500 for example), calculate monthly returns. Cost of equity analysis 1. Estimate beta and discuss if your firm has higher market risk than the market 2. Estimate cost of equity using the beta you estimated from previous step 3. Compare cost of equity with the realized stock return. What do you find and how do you interpret the result? 4. How can you lower cost of equity for the firm(try to make some strategic advices)? Cost of debt 1. Estimate cost of debt for your firm 2. How can you lower cost of debt for the firm Step by Step Solution
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