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Determine the risk premium on common stock

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Reference no: EM131715588

Cost of common stock equity -CAPM J&M Corporation common stock has a beta, b, of 1.3. The risk-free rate is 9% ,and the market return is 12%.

a. Determine the risk premium onJ&M common stock.

b. Determine the required return thatJ&M common stock should provide.

c. Determine J&M's cost of common stock equity using the CAPM.

Reference no: EM131715588

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