Calculate the estimated cost of common equity

Reference no: EM131962826

Question: Cost of Equity: CAPM

Booher Book Stores has a beta of 1.3. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 6.5%. The market risk premium is 4%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.

Reference no: EM131962826

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