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What is the estimated cost of common equity using the capm

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Question - Booher Book Stores has a beta of 0.7. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 6%. The market risk premium is 4.5%, 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: EM133137152

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