Question: Identify Rf. See Exhibit 4. Based on the data provided which do you think is the most appropriate Rf to use in the Capital Asset

Identify Rf. See Exhibit 4. Based on the data provided which do you think is the most appropriate Rf to use in the Capital Asset Pricing Model. Why? Rf = X Why? You can assume that Market Risk Premium is 4.4%. Using the information above, calculate the cost of equity using the CAPM. Cost of Equity = Which did you use? Why? When forecasting the WACC are you going to use the Cost of Equity from the DDM or CAPM? Why?

Date	1 mo	3 mo	6 mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr	20 yr	30 yr
10/1/2018	2.13	2.23	2.4	2.6	2.82	2.9	2.96	3.04	3.09	3.18	3.24

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