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What is the estimated cost of common equity

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Reference no: EM131868800

Broncos Gut Bomb Burgers Incorporated has a beta of 0.8. The yield on a 10-year T-bond is 6%. The market risk premium is 5.5% and the return on an average stock in the market is 15%. What is the estimated cost of common equity using the CAPM formula? 

Round to 1 decimal point, if your answer was 4.1%, enter 4.1.

Reference no: EM131868800

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