What is the estimated cost of common equity using capm

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Brook-sisters has a beta of 0.85. The yeild on a 3 - months T-bill is 3.75%, and the yeild on the 10 year government bond is 5.5% The market risk premium is 6.7%, but the stock market return in the previous years was 16%. What is the estimated cost of common equity using CAPM?

Reference no: EM132421959

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