).

A 4-year time frame was used to obtain as many data points as possible and pr
ovide limited drastic changes in the economy such as GFC. The adjusted stock pri
ce used includes dividend yield (Appendix C).
o The regression reveals beta as 1.46 as shown in Figure 2. In comparison,
analysts have estimated the beta for WOR as 2.02 (Yahoo Finance, 2017) and 1.2
(MorningStar, 2017).
- Risk-free Rate
o Risk free rate was estimated using the historic returns for a riskless i
nvestment, 10 year zero coupon Australian Treasury Bond. The risk-free rate (2.6
1%) was used to calculate the cost of equity (Appendix D).
- Risk Premium (ERMP)
o The ERMP was calculated by finding