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To estimate the cost of equity for Tesla, go to finance.yahoo.com and enter the ticker symbol "TSLA." Follow the various links to find answers to the following questions: What is the most recent stock...

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To estimate the cost of equity for Tesla, go to finance.yahoo.com and enter the ticker symbol "TSLA." Follow the various links to find answers to the following questions: What is the most recent stock price listed for Tesla? What is the market value of equity, or market capitalization? How many shares of stock does Tesla have outstanding? What is the beta for Tesla? Now go back to finance.yahoo.com and follow the "Bonds" link. What is the yield on 3-month Treasury bills? Using a 7 percent market risk premium, what is the cost of equity for Tesla using the CAPM?
Answered 180 days After Dec 24, 2021

Solution

Rochak answered on Jun 22 2022
96 Votes
Inputs Given,
Market Risk Premium = 7%
All the details are as of the close of 21st June 2022
The most recent stock price of Tesla Inc. = $711.11
Market Value of Equity, or Market Capitalization = $736.72 billion
(The market value of equity or market capitalization is the total value of all the...
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