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3 P9-9 (similar to) Cost of common stock equity-CAPM Netflix common stock has a beta, b, of 1.4. The risk-free rate is 5%, and the

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3 P9-9 (similar to) Cost of common stock equity-CAPM Netflix common stock has a beta, b, of 1.4. The risk-free rate is 5%, and the market return is 12%. 1. Determine the risk premium on Netflix common stock . Determine the required return that Netflix common stock should provide -. Determine Netflix's cost of common stock equity using the CAPM. 1. The risk premium on Netflix common stock is %. (Round to one decimal place)

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