For Nestle -a)Estimate beta (using the monthly stock prices of the last 5 years to estimate the beta, present the estim

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answerhappygod
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For Nestle -a)Estimate beta (using the monthly stock prices of the last 5 years to estimate the beta, present the estim

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For Nestle -a)Estimate beta (using the monthly stock
prices of the last 5 years to estimate the beta, present the
estimation in a graph, and interpretation of what the beta of
Nestle company implies the explanation behind the choice of the
risk-free rate
b) Estimation of the equity market risk premium
providing the calculation of the risk premium and the
risk-free rate of interest
c) Computation of Nestles estimated cost of common equity using
CAPM. For comparison of your estimated cost of common equity,
compute the cost of common equity using the dividend discount model
as well, in this case, show the estimation of the upcoming dividend
and growth in dividends (provide the value, source, for all your
computations).
d) Estimation of cost of debt(provide the value as well as a
short explanation behind 2 choices of your value)
e) Estimation of the WACC (describing in detail how you got the
target capital structure weights, including the sources and dates
of when the information was gathered.
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