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Determine what estimated cost of common equity using capm

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Reference no: EM132692023

Cost of Equity: CAPM

Problem1 : Booher Book Stores has a beta of 1.2. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 4.5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM? Round answer to two decimal places.

Reference no: EM132692023

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