How to calculate CAPM using this data Historic beta 1996 0 95 1997 0 82 1998 0 82 1999 0 62 2000 0 81 YTD(2001) 0 61 Average 0 7 UK historical equity premiums Geometric mean 5 30 Arithmetic mean 7 20 Consensus EPS estimates Fiscal year2002 2 31 Fiscal Year 2003 2 66 Current Yield on UK Treasury 3 months 3 58 6 months 3 58 1 year 3 58 5 year 4 87 10 year 5 38 20 year 5 73 Current yield on Debt coupon (semi annual) 6 74 Issued 7 14 96 Maturity 7 14 21 Current price 95 50 Dividend history payment date and forecast year quarter 1 quarter 2 quarter 3 quarter 4 total 1997 0 11 0 11 0 11 0 11 0 44 1998 0 12 0 12 0 12 0 12 0 48 1999 0 12 0 12 0 12 0 12 0 48 2000 0 12 0 12 0 12 0 12 0 48 2001 0 12 0 12 0 12 0 12 0 48 value line forecast from 1998 2000 to 2004 2006 5 40

Question: How to calculate CAPM using this data? Historic beta 1996 0.95 1997 0.82 1998 0.82 1999 0.62 2000 0.81 YTD(2001) 0.61 Average 0.7 UK historical

How to calculate CAPM using this data?

Historic beta

1996	0.95
1997	0.82
1998	0.82
1999	0.62
2000	0.81
YTD(2001)	0.61

Average

0.7

UK historical equity premiums

Geometric mean	5.30%
Arithmetic mean	7.20%

Consensus EPS estimates

Fiscal year2002	£2.31
Fiscal Year 2003	£2.66

Current Yield on UK Treasury

3 months	3.58%
6 months	3.58%
1 year	3.58%
5 year	4.87%
10 year	5.38%
20 year	5.73%

Current yield on Debt

coupon (semi-annual)	6.74%
Issued	7/14/96
Maturity	7/14/21
Current price	£95.50

Dividend history payment date and forecast

year	quarter 1	quarter 2	quarter 3	quarter 4	total
1997	0.11	0.11	0.11	0.11	0.44
1998	0.12	0.12	0.12	0.12	0.48
1999	0.12	0.12	0.12	0.12	0.48
2000	0.12	0.12	0.12	0.12	0.48
2001	0.12	0.12	0.12	0.12	0.48

value line forecast from 1998/2000 to 2004-2006- 5.40%

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