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What is amazon's wacc? note: amazon does not have r preferred stock. apply the capm to estimate the cost of equity using the expected market return and risk-free rate from the walmart wacc estimate

Sagot :

The amazon WACC is 11.62

CAPM method,

ke = Rf +\beta (Rm-Rf)

Where,

Ke = Cost of Equity

Rf = Risk-free rate is the risk-free rate used has been the short-term 3-month rate (13-week)  Treasury bill rate.

Beta = calculated as the slope of the regression line (given)

Rm = expected market return that is historically used since 1926.

Ke= 0.11+1.1634(10-0.11)

Ke= 11.62

Learn more about market return here: https://brainly.com/question/25821437

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