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Cost of common stock equity: CAPM Netflix common stock has a beta, b, of 0.8. The risk-free rate is 3%, and the market return is
Cost of common stock equity: CAPM Netflix common stock has a beta, b, of 0.8. The risk-free rate is 3%, and the market return is 10%. a. Determine the risk premium on Netflix common stock. b. Determine the required return that Netflix common stock should provide. c. Determine Netflix's cost of common stock equity using the CAPM.
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