Gd has a beta of 08 the yield on a 3-month t-bill is 4 and

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GD has a beta of 0.8. 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 5.5% 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: EM13566968

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