How do I estimate the beta of the firm’s stock on the basis of weekly returns over the last 102 weeks if I download data on the daily time series of the price of the firm’s stock and on S&P 500, with the weekly returns computed so that the number of missing observations are minimized? Then how can I find the following?

** (vi). **The Cost of equity capital for the firm, *r*, computed using your own estimate of beta by assuming (a) that the CAPM holds, and that (*EM* – *Rf*), the equity risk premium is 6%.

** (vii). **The present value of the firm’s assets in place, and

** (viii). **The present value of its growth opportunities.

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