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What is the estimated cost of common equity

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David's Digital Device's has a beta of 0.8. The yield on the 3 month T-Bill is 4% and the yield on the 10 year T-Bond is 6%. The market risk premium is 5.5%, and the average return on the stock market was 15% last year. What is the estimated cost of common equity using the CAPM?

Reference no: EM131697157

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