Determine the risk premium on common stock

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Reference no: EM131176831

Cost of common stock equity- CAPM. J&M Corporation stock has a beta, b, of 0.8. The risk-free rate is 7% and the market return is 13%.

A) Determine the risk premium on J&M common stock.

B) Determien the required retrun that J&M common stock should provide.

C) Determine J&M cost of common stock equity using the CAPM.

Reference no: EM131176831

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