Cost of common stock equitylong dash—CAPM J&M Corporation common stock has a beta, b, of 1.7. The risk-free rate is 8 %, and the market return is 12%.
a. Determine the risk premium on J&M common stock.
b. Determine the required return that J&M common stock should provide. (Round to one decimal place)
c. Determine? J&M's cost of common stock equity using the CAPM. (Round to one decimal place)
a. The risk premium on J&M common stock is % (Round to one decimal place) same as the first one..