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What is the estimated cost of common equity using the CAPM

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Reference no: EM132484319

Question 1: Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 8%. The market risk premium is 7.5%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM?

Reference no: EM132484319

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