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What is the estimated cost of common equity using the CAPM

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Question - Cost of Equity: CAPM

Booher Book Stores has a beta of 0.6. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 6.5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.

Reference no: EM132562090

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