Using Targets $202310$K Please help a$.$ Estimate cost of equity capital

Risk free rate $(r_f)$

$($Use the return on $10-$year U$.$S$.$ treasury notes as of the company's $10-$K release date as an estimate of $r_f)$

Beta $()$

$($check Yahoo Finance for company beta; this beta changes with market price. Leave a note on the date when you get the beta.$)$

$($We can use the $3-$year or $5-$year return of the S&P $500$ as a proxy for market return $r_m.$ Check Yahoo Finance for the

historical return of S&P $500$ as of the company's $10-$K release date. Remember to annualize the $3-$year $(5-$year$)$ return by

Market risk premium $(r_m-r_f)$

dividing the rate of rate by $3(5)$ to get the annual return. $)$

Cost of equity capital

$r_e=r_f+[(r_m-r_f)]$

b$.$ Estimate after$-$tax cost of debt capital

Pretax cost of debt

$0$ Tax rate

After tax cost of debt

$r_d=$ Pretax cost of debt $-$ tax rate