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    How would you estimate the cost of equity for the acquisition of Omni?

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    How would you estimate the cost of equity for the acquisition of Omni? You will find below some extra information about the comparable firms presented in Exhibit 3.

    ** Please see attached PDF **

    Please use an excel spreadsheet in the response. I need to understand how to arrive at the cost of equity.

    Assume Omni's target debt to equity ratio is 1

    Company Name Beta Average Tax Rate
    Rentex 1.61 0.28
    Servisco 1.24 0.31
    Means Services 0.84 0.34
    NSI 0.69 0.32
    Unitog 1.23 0.29

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    https://brainmass.com/business/capital-asset-pricing-model/how-would-you-estimate-the-cost-of-equity-for-the-acquisition-of-omni-34747

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