What is the estimated cost of common equity using the capm


Problem

Cost of Equity: CAPM Booher Book Stores has a beta 01'09. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 7%. The market risk premium is 6.5%, and the return on an average stock in the market last year was 13%. 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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