Purchase Solution

Calculate the Cost of Equity Capital (CARM)

Not what you're looking for?

Ask Custom Question

The two companies I need to do this question for are JC Penny (JCP) and Sears (SHLD). Calculate the Cost of Equity Capital according to the Capital Asset Pricing Model (CAPM) formula.

For the CAPM, you can find the company's beta at finance.google.com. Use 10% as the expected return on the market portfolio.

Go to
http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml and use the rate on the 30-year Treasury bond as the risk free rate of return.

Purchase this Solution

Solution Summary

This response calculates the Cost of Equity Capital according to the Capital Asset Pricing Model formula.

Purchase this Solution


Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.