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The company is Lockheed Martin. please show excel formulas also! You are a junior financial executive for a company. The CFO is assessing the company's
The company is Lockheed Martin.
You are a junior financial executive for a company. The CFO is assessing the company's weighted average cost of capital and wants your help estimating the current cost of equity. To estimate the cost of equity, use the following standards: The cost of equity equals the required return based on the CAPM, The proxy for the market is the S&P 500, The proxy for the risk-free rate is the 1-month T Bill, Use 5 years of monthly data to estimate beta, the market return over the next year is expected to be equal to the market return over the past year, the risk-free rate over the next year is expected to be 0. What is the company's current cost of equity? Show in Excel and show formulas as well as to how you got your please show excel formulas also!
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