What is the common stockholder required rate of return

Reference no: EM13270447

kc = krf + b(km-krf)
Krf = Risk Free rate
b = Beta km
krf = Market Risk Premium or Expected rate of return for "average security"
minus the risk free rate, km - krf

Example: If beta is 1.4, risk-free rate is 3.75% and expected market rate is 12%

What is the common stockholder required rate of return?

Reference no: EM13270447

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