Question: Please Help! Select type of Interest Rate Data Select type of Interest Rate Datal Daily Treasury Yield Curve Rates Select Time Period Select Time Period

 Please Help! Select type of Interest Rate Data Select type ofInterest Rate Datal Daily Treasury Yield Curve Rates Select Time Period SelectTime Period Date 1 Mo 2 Mo 3 Mo 6 Mo 1Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20Yr 30 Yr 11/02/20 0.09 0.09 0.09 0.11 0.13 0.16 0.20 0.380.63 0.87 1.41 1.63 11/03/20 0.09 0.10 0.10 0.12 0.14 0.17 0.210.39 0.65 0.90 1.44 1.66 11/04/20 0.08 0.09 0.10 0.10 0.12 0.140.18 0.33 0.55 0.78 1.33 1.55 11/05/20 0.09 0.10 0.10 0.10 0.120.14 0.18 0.33 0.56 0.79 1.32 1.54 11/06/20 0.10 0.10 0.10 0.110.12 0.16 0.21 0.36 0.59 0.83 1.37 1.60Select type of Interest RateData Daily Treasury Yield Curve Rates Go Select Time Period Current Month

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Go Find the 10-Year Treasury Rate on Nov 02, 2020. Enter thatyield as the risk-free rate. ii. Equity beta. Find the equity betafor Toyota from Yahoo! Finance (https://finance.yahoo.com/). On the middle right of theweb page, find the search box and enter the symbol for Toyota(TM). Under the Summary tab, you can find the beta for Toyota(if you use Windows, press Curl+F to search for the beta). iii.Expected market risk premium. Use the historical approach to estimate the expectedmarket risk premium (see the slides 7 and 8 in Lecture 10).The historical market risk premium in U.S. is in a range of3-5%. Determine what the expected market risk premium you should choose. Selectone from the lower bound, the upper bound, and the average (this

Select type of Interest Rate Data Select type of Interest Rate Datal Daily Treasury Yield Curve Rates Select Time Period Select Time Period Date 1 Mo 2 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr 11/02/20 0.09 0.09 0.09 0.11 0.13 0.16 0.20 0.38 0.63 0.87 1.41 1.63 11/03/20 0.09 0.10 0.10 0.12 0.14 0.17 0.21 0.39 0.65 0.90 1.44 1.66 11/04/20 0.08 0.09 0.10 0.10 0.12 0.14 0.18 0.33 0.55 0.78 1.33 1.55 11/05/20 0.09 0.10 0.10 0.10 0.12 0.14 0.18 0.33 0.56 0.79 1.32 1.54 11/06/20 0.10 0.10 0.10 0.11 0.12 0.16 0.21 0.36 0.59 0.83 1.37 1.60Select type of Interest Rate Data Daily Treasury Yield Curve Rates Go Select Time Period Current Month Go Find the 10-Year Treasury Rate on Nov 02, 2020. Enter that yield as the risk-free rate. ii. Equity beta. Find the equity beta for Toyota from Yahoo! Finance (https://finance.yahoo.com/). On the middle right of the web page, find the search box and enter the symbol for Toyota (TM). Under the Summary tab, you can find the beta for Toyota (if you use Windows, press Curl+F to search for the beta). iii. Expected market risk premium. Use the historical approach to estimate the expected market risk premium (see the slides 7 and 8 in Lecture 10). The historical market risk premium in U.S. is in a range of 3-5%. Determine what the expected market risk premium you should choose. Select one from the lower bound, the upper bound, and the average (this is one of case discussion questions)? An important factor to consider is the Covid-19 pandemic, which seems to get worse recently. How does that affect investors' expected return? Use your choice of market risk premium to computer using the CAPM in excel (include your work for easy tracing. E.g., type the formula in Excel and no hardcoding). b. For the cost of debt, rD: i. Find ratings. Go to the Toyota's investor relation web page https://global.toyota/en/ir/stock/rating/) and find its latest S&P rating. As noted in the ratings table, these ratings apply to long-term bonds issued by Toyota Motor Corporation. 11. Debt beta. If you find that Toyota has a rating of A or above, then you can make the approximation that the cost of debt r, is the risk-free rate. If Toyota's credit rating has slipped, use Table 12.3 below to estimate its debt beta based on the credit ratings and use the CAPM to estimate ro in excel. TABLE 12.3 Average Debt Betas by Rating and Maturity 15 By Rating A and above BBB BB B CCC Avg. Bera

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