Explain the standard CAPM method to estimating cost of equity, and how we estimate the market risk premium and risk-free rate (and why we use this method) Where might we find a beta estimate? Explain the potential problems with this approach. Explain why we might need to rely on data from the company’s 10-k to determine the cost of debt, rather than using only the firm’s market-traded bonds. Why would we want to know more than the interest expense reported on the income statement? Calculate cost of equity, cost of debt, and WACC Explain the basics of the dividend discount model for valuation. Explain the problems with implementing this model.