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You need to estimate the equity cost of capital for XYZ Corp. You have the...

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Finance

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You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns: 7 . a. What was XYZ's average historical excesters returns for each year Estimate XYZ's beta. c. Estimate XYZ's historical alpha d. Suppose the current risk-free rate is 3%, and you expect the market's return to be 10%. Use the CAPM fo estimate e. Would you base your estimate of XYZ's equity cost of capital on your answer in part (a) or in part (d)? Data table

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