Cost of common stock equity using the CAPM

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J&M Corporation common stock has a? beta, b?, of 1.6. The? risk-free rate is 5%?, and the market return is 9?%.

a. Determine the risk premium on? J&M common stock. (Round to one decimal place)

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.

Reference no: EM131552614

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