Professional Documents
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& Team
• Gov’t influence
relinquished allowing
Airbus to make major
business decisions.
Risk & Return: Boeing
Used weekly data from 2009 through Debt $43,427,702,772
2013 from Boeing and S&P 500 to Equity $103,136,011,176
calculate regression:
Tax 27%
y = 0.00036 + 1.28x β(L) 1.28
β(U) 0.89
The weekly return averaged 0.32%
which results in estimating that Boeing R(f) 2.73%
performed 0.12% better than expected. MRP 5.00%
R(e) 9.11%
R(f) (1 – β ) = -0.096%
Intercept – R(f) (1 – β ) = 0.1161% R(d) 3.73%
WACC 7.22%
Annualized return yields 5.97%
Risk & Return: Airbus
Used weekly data from 2009 through Debt $4,260,048,961
2013 from Airbus and CAC 40 to
calculate regression: Equity $43,549,799,506
Tax 27%
y = 0.0041 + 0.958x Beta(L) 0.96