Chapter $12$: Cost of Common Equity$\_($CAPM Approach$)$

What is the cost of common equity?

Hint: please remember that the market risk premium $+$ the risk$-$free rate $=$ expected

return of the market, which means the market risk premium $=$ expected return of the

market $-$ the risk$-$free rate.

Note: Enter your number with THREE decimals and without the percentage. That is$,$ if

your answer is $20\mathrm{.}28\%,$ enter $\mathrm{.}203.$