Cost of equity and capm, What is the estimated cost of

Cost of equity and capm

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Reference no: EM131547119

Cost of Equity: CAPM

Booher Book Stores has a beta of 1.3. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 7.5%. The market risk premium is 7%, and the return on an average stock in the market last year was 14.5%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.

Reference no: EM131547119

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