Cost of equity capmbooher book stores has a beta of 13 the, Ask an Expert

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Cost of Equity: CAPM

Booher Book Stores has a beta of 1.3. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 7.5%. The market risk premium is 7%, and the return on an average stock in the market last year was 14.5%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92355840

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