The firm is Costco Wholesale Corporation. Beta is 0.67. Please provide the following

a. A SML calculation for your firms stock, using this beta and 5 year averages of historical market (NYSE or S&P 500) returns and historical Treasury bill returns.

b. A comparison of the SML required return on your firms stock and the discounted stock valuation required return on the stock. {P0= D1/ (rs-g) implies rs = D1/P0 + g}.

c. Discuss the SML required return and any differences between this and the stock valuation model required return.

Data can easily be found online.