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Cost of common stock equity CAPM J&M Corporation common stock has a beta, b , of 0.6. The risk-free rate is 3%, and the market

Cost of common stock equityCAPM J&M Corporation common stock has a beta, b , of 0.6. The risk-free rate is 3%, and the market return is 6%.

a. Determine the risk premium on J&M common stock.

b. Determine the required return that J&M common stock should provide.

c. Determine J&M's cost of common stock equity using the CAPM.

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