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Cost of common stock equity-CAPM Netfix common stock has a bota, b, of 1.8 . The risk-free rate is 4%, and the market return is
Cost of common stock equity-CAPM Netfix common stock has a bota, b, of 1.8 . The risk-free rate is 4%, and the market return is 12%. a. Determine the risk premium on Netfix common stock. b. Determine the required retum that Nethix common stock should provide. c. Determine Netlix's cost of common stock equity using the CAPM. a. The risk premium on Netflix common stock is \%. (Round to one decimal place)
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