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quickly please on the S&P500 and the equation was as follows: ReturnsGoogle = 0.0001 + 0.55 (ReturnsS&P500) R2 = 0.45, the standard error for beta
quickly please
on the S&P500 and the equation was as follows:
ReturnsGoogle = 0.0001 + 0.55 (ReturnsS&P500) R2 = 0.45, the standard error for beta estimate is 0.5
You also note that the average unlevered beta for comparable firms is 1.4, Google's debt-to-equity ratio 30% ,T-bond rate is 0.075 and the equity risk premium is 0.065 and Google AA rate bond default spread is 0.01. ( Tax rate = 40%)
Please write your answers in decimals.
What is the levered beta for Google?
What is Google's after tax cost of debt?
What is Google's cost of equity?
What is the WACC?
What is the firm specific risk?
What is the market risk?
What is the lower bound in a 95 confidence interval for beta estimate?
What is the upper bound in a 95 confidence interval for beta estimate?
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