Cost of common stock enquiry: CAPM J&M Corporation stock has a beta, beta, of 1.2. The risk-free rate is 6%, and the market return is 11%, Determine the risk premium on J&M's cost of common stock enquiry using the CAPM. Cost common stock enquiry Ross Textiles wishes to measure its cost of common stock enquiry. The firm's stock is currently selling for $57.50. The firm expects to pay a $3.40 divided at the end of the year(2016). The dividends for the past 5 years are shown in the following table