Cost of Equity - Calculate the Apple's cost of equity using the capital asset pricing...

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Finance

Cost of Equity - Calculate the Apple's cost of equity using the capital asset pricing model (CAPM). The formula for the CAPM is ri = rf + ?i (RMkt - rf). Assume the risk-free rate (rf) is the current rate of 10-year U.S. Treasury Bonds. Calculate the market rate (RMkt) by calculating the market return on the Standard & Poors 500 for the past 2 calendar years. The beta for the firm can be obtained from Yahoo! Finance.

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