What is the estimated cost of common equity using the capm, Financial Accounting

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What is the estimated cost of common equity using the capm

Problem

Booher Book Stores has a beta of 0.7. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 8%. The market risk premium is 7.5%, and the return on an average stock in the market last year was 14%. What is the estimated cost of common equity using the CAPM?

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Financial Accounting: What is the estimated cost of common equity using the capm

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Financial Accounting: What is the estimated cost of common equity using the capm

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