P9-9: Cost of common stock equity 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.
Paper#5305 | Written in 18-Jul-2015Price : $25