please solve te estimate the Aquity cost of capital...

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te estimate the Aquity cost of capital for XYZ Coro. You have the followino data available regarding oast Data table (Click on the following icon in order to copy its contents into a spreadsheet.) You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns a. What was XYZ s average historical return? b. Compute the market's and XYZ 's excess returns for each year Estimate XYZ's beta c. Estimate XYZ 's historical alpha. d. Suppose the current risk-free rate is 2%, and you expect the market's return to be 8%. Use the CAPM to estimate an expected return for XYZ Corp.'s stock e. Would you base your estimate of XYZ 's equity cost of capital on your answer in part (a) or in part (d)? a. What was XYZ s average historical return? XYZ's average historical return was % (Round to one decimal place.) b. Compute the market's and XYZ 's excess returns for each year The market's excess return for 2007 was \%. (Round to the nearest integen) The market's excess return for 2008 was \%. (Round to the nearest integer) XYTS excess retum for 2007 was \%. (Round to the nearest integer) XYZ's excess return for 2008 was \% (Round to the nearest integer.) Estinate XYZ 's beta XYZs beta is (Round to two docimal places) You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns: a. What was XYZ's average historical return? b. Compute the markets and XYZ's excess fetumn for each year. Estimate XYZ's beta c. Estimate XYZ's historical alpha d. Suppose the current risk-free rate is 2%, and you expect the markers return to be 8%. Use the CAPM to estimate an expected retum for XYZ Corp 's slock e. Would you base your estimate of XYZ s equity cost of capital on your answer in part (a) or in part (d)? Estimate XYZ beta XYZS beta is (Round to two docimal places) c. Estimate XYZ historical alpha XYZs histcoical alpha was \% (Round to two decimal places) d. Suppose the current risk tree rate is 2%, and you expect the mankers return to be 8\%. Use the CAPM to estimate an expected roturn for XYZ Corp 's stock The expected return for XYZ Corp 's stock was \% (Round to two decimal places) e. Would you base your estimale of XYCS equily cost of captal on your answor in part (a) or in part (d)? (Select the best choce below) A. Par (a) becauso the averoge past retums provides a betor estimate of expocted ietuans B. Part (a) because the CAPM provides a better estimate of expocied teturns c. Part (d) beckuse the CAPM provides a botier estimato of expected returns D. Part (d) hocause the avorago gact returns providos a bether estinato of oxpocted returns

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