To estimate the cost of equity for Tesla, go to finance.yahoo.com and enter the ticker symbol TSLA in Search Finance. Follow the various links to find answers to the following questions:

What is the most recent stock price listed for Telsa? What is the market value of equity or market capitalization? What is the beta for Tesla? Click on More Key Statistics. How many shares of stock does Tesla have outstanding?

Now go back to finance.yahoo.com home page and follow the Bonds link (on the left menu click on the Market Data and then scroll down to Bonds). What is the yield on 3-month Treasury Bills? What is the yield on the 10-year Treasury Bond? Using the CAPM, calculate the cost of equity for Tesla using a 7 percent market risk premium and using the yield 3-month Treasury Bills and the yield on the 10-year Treasury Bonds as proxies for the risk-free rate. Does it matter if you use the yield on 3-month Treasury Bills or the yield on 10-year Treasury Bonds in this case? As the company is an ongoing enterprise expected to continue for years to come, which would be more appropriate using the yield on 3-month Treasury Bills or the yield on 10-year Treasury Bonds?