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#11 Cost of common stock equity CAPM Netflix common stock has a beta, b, of 1.2. The risk-free rate is 4%, and the market return
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Cost of common stock equity CAPM Netflix common stock has a beta, b, of 1.2. The risk-free rate is 4%, and the market return is 9%. a. Determine the risk premium on Netflix common stock. b. Determine the required return that Netflix common stock should provide. c. Determine Netflix's cost of common stock equity using the CAPM. a. The risk premium on Netflix common stock is \%. (Round to one decimal place) Cost of common stock equity - CAPM Netflix common stock has a beta, b, of 0.8. The risk-free rate is 4%, and the market return is 11%. a. Determine the risk premium on Netfix common stock. b. Determine the required return that Netflix common stock should provide. c. Determine Netfix's cost of common stock equity using the CAPM. a. The risk premium on Netflix common stock is \%. (Round to one decimal place) Step by Step Solution
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Stock Market Investing For Beginners
Authors: George Graham
1st Edition
1914346432, 978-1914346439
