Question: Return statistics for Visa stock, the S&P 5 0 0 and the risk - free asset, Treasury bills, are given below: A B C D
Return statistics for Visa stock, the S&P and the riskfree asset, Treasury bills, are given below:
A B C D
Year Visa S&P Tbill
In addition, you have gathered the following data:
A B C
Current rf
Debt in million
Debt in million
Interest million
Stock price
# of shares million
Tax rate
Regress the excess return on the stock on the excess return on the S&P What is Visa's beta?
What is the cost of equity?
What is the cost of debt?
What is the company's weighted average cost of capital?
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