Cost of common stock equity CAPM Netflix common stock has a beta, b, of 1.6. The risk-free rate is 4%, and the expected market return is 7%.

1. Determine the risk premium on Netflix common stock.
2. Determine the required return that Netflix common stock should provide.
3. Determine Netflix's cost of common stock equity using the CAPM.

a. The risk premium on Netflix common stock is

%. (Round to one decimal place)

Cost of common stock equity-CAPM Netfilx common stock has a beta, b, of 1.6. The risk-free rate is 4%, and the expected market retum is 7\%. a. Determine the risk premium on Netflix common stock. b. Determine the required return that Netfix common stock should provide. c. Determine Netflix's cost of common stock equity using the CAPM. a. The risk premium on Netflix common stock is \%. (Round to one decimal place)