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What is the estimated cost of common equity

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Tix Shoes nc has a beta of 0.8. 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 is 15%. What is the estimated cost of common equity using the CAPM formula? List out the steps to get the answer.

Reference no: EM131862104

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