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You're also going to need some information on KO's common equity. Rather than trudge back over to the Bloomberg terminal, you decide to just
You're also going to need some information on KO's common equity. Rather than trudge back over to the Bloomberg terminal, you decide to just pull up a quick quote from Yahoo! Finance: The Coca-Cola Company (KO) NYSE - NYSE Delayed Price. Currency in USD $49.58-0.23 (-0.43%) In watchlist Visitors trend 2W 10W 9M Summary Company Outlook Chart Conversations Statistics Historical Data Profile Financials Analysis Options Previous Close 49.81 Market Cap 211.296B 1D 5D 1M 6M YTD 1Y 5Y Max Full screen 50.36 Open 50.11 Beta (5Y Monthly) 0.59 Bid 49.57 x 2200 PE Ratio (TTM) 25.69 50.11 Ask 49.59 x 1200 EPS (TTM) 1.93 49.58 Day's Range 49.24-50.36 Earnings Date Jan 28, 2021- Feb 01, 2021 49.24 52 Week Range 36.27-60.13 Volume 8,499,289 Forward Dividend & Yield Ex-Dividend Date April 30, 2022 1.56 (3.15%) 10 AM 12 PM Trade prices are not sourced from all markets Avg. Volume 15,055,041 1y Target Est 56.40 The current yield on 10-year Treasury notes is 2.92%. You estimate the market risk premium to be 5.5%. Using this information, along with the beta of KO's common equity provided by Yahoo! in the above quote, calculate KO's cost of common equity using the capital asset pricing model (CAPM). Question 3) KO's cost of equity using CAPM is %
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