11-6 Cost of Equity: CAPM Le is not enough 11 tiups To 1205 a'nobs al 160W Deintema (ernal cash flow and the com Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4%, 241 el mil and 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 last year was 15%. What hapbiyil is the estimated cost of common equity using the CAPM?.00.62 10

1-6 Cost of Equity: CAPM Booher Book Stores has a beta of 0.8 . The yield on a 3 -month T-bill is 4%, and 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 last year was 15\%. What is the estimated cost of common equity using the CAPM