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What is the estimated cost of common equity via capm

Problem:

Booher Book Stores has a beta of .8. 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 5.5%, but the stock market return in the previous years was 15%. What is the estimated cost of common equity using the CAPM?

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Finance Basics: What is the estimated cost of common equity via capm

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Finance Basics: What is the estimated cost of common equity via capm

Reference No:- TGS02038014

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