Cost of common stock equity-capm

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Reference no: EM1332818

J&M Corporation common stock has a beta, b, of 1.2. The risk-free rate is 6%, and the market return is 11%.

a. Determine the risk premium on J&M common stock.

b. Determine the required return that J&M common stock should provide.

c. Determine J&M's cost of common stock equity using the CAPM.

Reference no: EM1332818

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