Using Data Visualizations to Analyst Cost of Capital Data

The following visualizations present data on the median beta, cost of debt, cost of equity, and the weighted average cost of capital $($WACC$)$ by industry for S&P $500$ firms for $2023.$

a$.$ Answer the following questions using the visualization that displays the median beta for each S&P $500$ industry.

What is the approximate average beta of all the firms in the S&P $500?$ Answer $1-0\mathrm{.}500\mathrm{.}512$

Which of the industries appears to move most closely with the market? Answer $2$Communication ServicesConsumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsInformation TechnologyMaterialsReal EstateUtilities

Given the betas in the visualization, buying a stock in which industry would minimize movements in the stock price relative to movements in the market? Answer $3$Communication ServicesConsumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsInformation TechnologyMaterialsReal EstateUtilities

b$.$ Answer the following questions using the visualization that displays median cost of capital information for each S&P $500$ industry.

Does the cost of debt or the cost of equity appear to be most responsible for fluctuations in the weighted average cost of capital? Answer $4$Cost of equityCost of debtBoth the cost of equity and the cost of debt contribute equally to WACCBoth the cost of equity and the cost of debt are unrelated to WACC

Companies in which industry can be expected to pay the most to raise capital from equity investors? Answer $5$Communication ServicesConsumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsInformation TechnologyMaterialsReal EstateUtilities

Companies in which industry can be expected to pay the most to raise capital from debt investors? Answer $6$Communication ServicesConsumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsInformation TechnologyMaterialsReal EstateUtilities