Akhmetova Aliyaa FIN-132 - Beta equity Beta debt Risk free rate r(f Expected market return R(rm Corporate tax rate Tc Equity Debt Cost of equity classic

Akhmetova Aliyaa FIN-132 - Beta equity Beta debt Risk free...

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Beta equity 1.5 Beta capital 1.9 Beta debt 0.4 Risk free rate, r(f) 6% Expected market return R(rm) 15% Corporate tax rate, Tc 40% Equity 40% Debt 60% Cost of equity, classic CAPM 23.10% Cost of equity, tax CAPM 25%
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Returns Date S&P 500 CSCO S&P 500 CSCO 3-Jul-02 911.62 13.19 1-Aug-02 916.07 13.82 0.49% 4.67% 3-Sep-02 815.28 10.48 -11.66% -27.66% 1-Oct-02 885.76 11.18 8.29% 6.47% 1-Nov-02 936.31 14.92 5.55% 28.86% 2-Dec-02 879.82 13.10 -6.22% -13.01% 2-Jan-03 855.70 13.37 -2.78% 2.04% 3-Feb-03 841.15 13.98 -1.71% 4.46% 3-Mar-03 848.18 12.98 0.83% -7.42% 1-Apr-03 916.92 15.00 7.79% 14.46% 1-May-03 963.59 16.41 4.96% 8.98% 2-Jun-03 974.50 16.79 1.13% 2.29% 1-Jul-03 990.31 19.49 1.61% 14.91% 1-Aug-03 1008.01 19.14 1.77% -1.81% 2-Sep-03 995.97 19.59 -1.20% 2.32% 1-Oct-03 1050.71 20.93 5.35% 6.62% 3-Nov-03 1058.20 22.70 0.71% 8.12% 1-Dec-03 1111.92 24.23 4.95% 6.52% 2-Jan-04 1131.13 25.71 1.71% 5.93% 2-Feb-04 1144.94 23.16 1.21% -10.45% 1-Mar-04 1126.21 23.57 -1.65% 1.75% 1-Apr-04 1107.30 20.91 -1.69% -11.97% 3-May-04 1120.68 22.37 1.20% 6.75% 1-Jun-04 1140.84 23.70 1.78% 5.78% 1-Jul-04 1101.72 20.92 -3.49% -12.48% 2-Aug-04 1104.24 18.76 0.23% -10.90% 1-Sep-04 1114.58 18.10 0.93% -3.58% 1-Oct-04 1130.20 19.21 1.39% 5.95% 1-Nov-04 1173.82 18.75 3.79% -2.42% 1-Dec-04 1211.92 19.32 3.19% 2.99% 3-Jan-05 1181.27 18.04 -2.56% -6.85% 1-Feb-05 1203.60 17.42 1.87% -3.50% 1-Mar-05 1180.59 17.89 -1.93% 2.66% 1-Apr-05 1156.85 17.27 -2.03% -3.53% 2-May-05 1191.50 19.40 2.95% 11.63% 1-Jun-05 1191.33 19.08 -0.01% -1.66% 1-Jul-05 1234.18 19.15 3.53% 0.37% 1-Aug-05 1220.33 17.62 -1.13% -8.33% 1-Sep-05 1228.81 17.92 0.69% 1.69% 3-Oct-05 1207.01 17.45 -1.79% -2.66% 1-Nov-05 1249.48 17.54 3.46% 0.51% 1-Dec-05 1248.29 17.12 -0.10% -2.42% 3-Jan-06 1280.08 18.57 2.51% 8.13% 1-Feb-06 1280.66 20.24 0.05% 8.61% 1-Mar-06 1294.87 21.67 1.10% 6.83% 3-Apr-06 1310.61 20.95 1.21% -3.38% S&P 500 PRICES July 2002 - June
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1-May-06 1270.09 19.68 -3.14% -6.25%
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