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Valuation of Equity. Cost of Equity Capital. Regression to Find Beta. Cost of Equity Capital. Assumed 3.69% for the 30-year T-bond from Yahoo Finance and assumed 5% for the market risk premium
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Cost of Equity Capital Assumed 3.69% for the 30-year T-bond from Yahoo Finance and assumed 5% for the market risk premium Beta is reasonable because it states that Southwest is riskier than the market and this seems acceptable for the airline industry
Valuing Southwest ValueLine Forecasts for 2015 through 2019 Southwest Airlines Multiyear Forecasts of Earnings, Dividends and Implied Book Values per Share
Sensitivity Analysis Market Value of Southwest Enterprise = $17,049 Red= Sell White = Buy
Works Cited • Capital IQ • SEC website • Module 9 from Valuation of Equity • 2013 10-K Earnings Conference Call