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P9?9 Cost of common stock equity?CAPM J&M Corpora...

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Question

P9?9 Cost of common stock equity?CAPM 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#5306 | Written in 18-Jul-2015

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