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Cost of common stock equity CAPM JM Corporation common stock has a beta b of 12 The risk free rate is 6 and the market return is 11 a Determine the risk premium on J M common stock

Cost of common stock equity—CAPM J&M Corporation common stock has a beta, b, of 1.2. The risk-free rate is 6%, and the market return is 11%.
a. Determine the risk premium on J&M common stock.
b. Determine the required return that J&M common stock should provide.
c. Determine J&M’s cost of common stock equity using the CAPM.

Jun 03 2021 View more View Less

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