The company I choose in Microsoft corporation and its beta is $0\mathrm{.}88.$ Using the beta of your selected company in the Chapter $12$ Pre$-$Chapter Activity, estimate the stock's cost of equity.

Look up the current $10-$Year Treasury yield on Yahoo! Finance by entering $^$TNX in the search bar.

Assume the risk$-$free rate is the Treasury yield that you looked up and the market risk premium is $7\mathrm{.}5\%.$

Write out Security Market Line equation for the estimated cost of equity with the appropriate inputs:

cost of equity $=$ risk$-$free rate $+$ beta X market risk premium.