Question: Each question tests both your calculation and analysis skills. Please show your calculations and analysis to the Part A & B questions in your answer.

Each question tests both your calculation and analysis skills.

Please show your calculations and analysis to the Part A & B questions in your answer.

I have uploaded the question in an image file

Each question tests both your calculation and

Part a) The below data is for an ASX listed company, Metacash. Calculate cost of equity using both CAPM and Fama French methods. Premiums: Market risk premium 7.00% Size risk premium 2.55% Market to book risk premium 3.81% Risk Free Rate 4.30% Coefficients: b 1.4450 -0.998 1.2232 CAPM beta 1.5000 Part b) Discuss step by step the implications of calculating Metacash cost of equity using CAPM (instead of Fama French) on the company's valuation and share price

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