What is an appropriate required rate of return against which to evaluate the prospective IRRs from the Boeing 7E7?
a.-Please use the capital asset pricing model to estimate the cost of equity. At the date Of the case, the 74-year equity market risk premium (EMRP) was estimated to be Which beta and risk-free rate did you use? Why?
b.-When you used the capital asset pricing model, which risk-premium and risk-free rate did you use? Why?
c.-Which capital-structure weights did you use? Why?