Cost of common stock equitylong dash

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Reference no: EM131508720

Cost of common stock equitylong dash—CAPM

? J&M Corporation common stock has a? beta, b?, of 1.1. The? risk-free rate is 7%?, 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: EM131508720

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