The Beta for Moderna is 1.5. The current 12-month treasury bill rate is 3.79%, while the thirty-year T-bond rate is 5.25%. Use the equity risk premiums in the table in question 3, if necessary. Estimate the cost of equity for Moderna, based upon A. using the treasury bill rate as your risk-free rate. B. using the treasury bond rate as your risk-free rate. C. Which one of these estimates would you use in valuation? Why?

Arithmetic Average Stocks - T. Stocks - T. Bills Bonds 1928-2019 8.18% 6.43% 1970-2019 7.26% 4.50% 2010-2019 13.51% 9.67% Geometric Average Stocks - T. Bills Stocks - T. Bonds 6.35% 4.83% 5.93% 3.52% 12.93% 9.31% Arithmetic Average Stocks - T. Stocks - T. Bills Bonds 1928-2019 8.18% 6.43% 1970-2019 7.26% 4.50% 2010-2019 13.51% 9.67% Geometric Average Stocks - T. Bills Stocks - T. Bonds 6.35% 4.83% 5.93% 3.52% 12.93% 9.31%