Question: Problem 41 Intro Return statistics for Visa stock, the S&P 500 and the risk-free asset, Treasury bills, are given below: B D 1 Year

Problem 41 Intro Return statistics for Visa stock, the S&P 500 and

Problem 41 Intro Return statistics for Visa stock, the S&P 500 and the risk-free asset, Treasury bills, are given below: B D 1 Year Visa S&P 500 T-bill 2 2016 0.06 0.13 0.036 3 2017 -0.26 -0.14 0.022 4 2018 -0.08 -0.02 0.015 5 2019 0.05 0.28 0.022 6 2020 0.14 0.08 0.028 7 2021 0.07 0.05 0.031 8 2022 0.04 0.05 0.038 9 2023 0.02 0.07 0.032 In addition, you have gathered the following data: A B 1 Current r 0.035 2 Debt in 2022 3 Debt in 2023 4 Interest 2023 15,820 million 16,650 million 813 million 38.03 5 Stock price 6 # of shares 1,770 million 7 Tax rate 0.21 Part 1 8 Attempt 1/5 for 10 pts. Calculate the excess returns for the stock and the S&P 500. What is the arithmetic average excess return for the S&P 500? 4+ decimals Submit Part 2 8* Attempt 1/5 for 10 pts. Regress the excess return on the stock on the excess return on the S&P 500. What is Visa's beta? 2+ decimals Submit Part 3 What is the cost of equity? 8 * Attempt 1/5 for 10 pts. 3+ decimals Submit Part 4 What is the cost of debt? Attempt 1/5 for 10 pts. 3+ decimals Submit Part 5 8 Attempt 1/5 for 10 pts. What is the company's weighted average cost of capital? 3+ decimals Submit

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