Cost of Equity and CAPM, Booher Book Stores has a beta of

Cost of Equity and CAPM

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Reference no: EM13894354

Cost of Equity: CAPM

Booher Book Stores has a beta of 0.6. The yield on a 3-month T-bill is 3% 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: EM13894354

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Cost of Equity and CAPM : Booher Book Stores has a beta of 0.6. The yield on a 3-month T-bill is 3% 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?

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