write about the home Depot Required rate of return and use CAPM model?

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







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

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.

Money-back guarantee

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 more

Zero-plagiarism guarantee

Each 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 more

Free-revision policy

Thanks 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 more

Privacy policy

Your 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 more

Fair-cooperation guarantee

By 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

Order your essay today and save 10% with the coupon code: best10