The writer is very fast, professional and responded to the review request fast also. Thank you.
write about the home Depot Required rate of return and use CAPM model?use the following example : The market capitalization rate or required rate of return for Teradyne, Inc. was calculated using the CAPM model which assumes that stock market prices are at equilibrium levels. In the CAPM model, the required rate of return is calculated by the formula k = rf + Beta (MRP). MRP is the market risk premium that may vary with individual companies. The following values were used for this calculation: beta = 2.16 ; rf = 0.18% (one year Treasury bill); MRP = 5.7 (commonly used in academia). MRP = Rm – Rf =5.7, therefore Rm = 5.88%. You should match the term of the risk-free rate to the term of Rf. These are estimated numbers for the future and the best way to arrive at a guesstimate is to look at recent history and think about what fundamentals are likely to affect them going forward. U.S. equity markets have sustained major ups and downs in recent years, but the returns in both 1-year and 10-year periods have been nearly 0%. Therefore: k = R(rf) + MRP x Beta = 0.18% + 5.7 x 2.16 = 12.5%. This analysis used a one year horizon because of future economic uncertainties.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more