Last week the price of a company's common stock closed at $27.00 per share. Use the weekly stock price and index value data in the table below to compute the company's beta, then use the beta to estimate the company's required cost of equity. Assume the appropriate risk-free rate is 5.5% and the market risk premium is 6.5%.

Beta = ________ Company's Cost of Equity Capital = _______ %

First day of the month Closing Prices for the company and Market Index
April 2009 through October 2009

Scenario: McCoy, Inc., has equity with a market value of $40 million and debt with a market value of $20 million. The cost of the debt is 6% semi-annually. Treasury bills that mature in one year field 5% per annum, and the expected return on the market portfolio over the next is 15%. The beta of McCoy's equity is 0.8. The firm p

How do you calculate the cost of debt andcost of equity if you are only given the beta, debt/equity proportion, and the after tax interest rate?
Please see attached for more details.
Use a spreadsheet to calculate the cost of debt, cost of equity (using CAPM), and weighted marginal cost of capital for each level of debt

I need to see intermediate steps and formulas.
California Real Estate, Inc. currently is an all-equity firm, the current expected rate of return on the firm's equity is 20%, risk free rate is 5% and the market risk premium is 10%. The firm is considering a capital structure change from zero debt to a debt-to-equity ratio .5,

The Super Muench Cookie Company has a capital structure consisting of 30% debt and 70% equity based on market values. Company's equitybeta based on its current level o debt financing is 1.8 and its debt beta is 0.6. Also, the risk free rate of interest is currently 3% on long-term government bonds. The company's pre-tax cost of

Please use the following (hypothetical) information to calculate the "cost of equity" by using the CAPM model:
RE = RF + Beta(RM - RF)
Nike = 20% + 0.80(7.50% - 20%) =
Sony = 20% + 1.40(8.50% - 20%) =
McDonald's = 20% + 0.30(9.50% - 20%) =

Acetate Inc. Problem 15.2
Acetate's Value: $30,000,000.00
Equity: $20,000,000.00
Debt: $10,000,000.00
Cost of Debt: 14.00%
T-Bills: 8.00% yield
Expected Return on Portfolio: 18.00%
Beta: 0.9
A- What is Acetate's Debt-Equity Ratio?
B - What is the firm's WACC? 16.67%
WACC Formula = B/B+S*rb +

What is the cost of equity of a firm that has a beta of 1.98 and a dividend yield of 6.58%? Assume the risk free rate is 4.43% and the return last year of the S&P500 was 12.29%.
a. 3.04%
b. 3.23%
c. 14.69%
d. 17.22%

McCoy, Inc., has equity with a market value of $40 million and debt with a market value of $20 million.
The cost of the debt is 6 percent semi-annually.
Treasury bills that mature in one year yield 5 percent per annum,
The expected return on the market portfolio over the next year is 15 percent.
The beta of McCoy's

Alpha Corporation andBeta Corporation are identical in every way except their capital structures. Alpha Corporation, an all-equity firm, has 5,000 shares of stock outstanding, currently worth $20 per share. Beta Corporation uses leverage in its capital structure. The market value of Beta's debt is $25,000. The cost of this debt