The most recent stock price on Yahoo Finance for Tesla as of March 24, 2021,...
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The most recent stock price on Yahoo Finance for Tesla as of March 24, 2021, is $630.27. Additionally, the market capitalization of Tesla was $604.967B. Tesla also had $959.85M in outstanding shares. Yahoo Finance also indicated the beta (5Y monthly) for Tesla is 2.06. As of March 24, 2021, the yield for a three-month treasury rate is 0.01%.
Using a 7 percent market risk premium, what is the cost of equity for Tesla using the CAPM?
(please show calculations)
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