Determine what estimated cost of common equity using capm

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Problem1 : Booher Book Stores has a beta of 1.1. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 7%. The market risk premium is 7.5%, 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?

Reference no: EM132958983

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