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Cost of common stock equity- CAPM   

J&M Corporation common stock has a? beta, b?, of 1.3.The? risk-free rate is 8%?, and the market return is 11?%.

a) The risk premium on? J&M common stock is____%

b) The required return that? J&M common stock should provide is _____%

c) J&M's cost of common stock equity using the CAPM is _____%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92054903

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