Calculate the discount rate for wells fargo stock

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Reference no: EM131324749

1) Define the CAPM formula including naming each of the elements in the Formula and how it is applied to the valuation of a stock.

2) Assume the following and calculate the Discount Rate for Wells Fargo stock using the CAPM : Risk Free Rate = 3.2% Market Rate = 10.0% Wells Fargo Estimated BETA = 1.25 Please list your calculations/work.

Reference no: EM131324749

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