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Jampm corporation common stock has a beta b of 12 the

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.

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Finance Basics: Jampm corporation common stock has a beta b of 12 the

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