Determine the risk premium on j and m common stock

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Question: J&M Corporation common stock has a beta of 0.9. The risk-free rate is 4%, and the market return is 8%.

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.

Reference no: EM131792855

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