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Cost of common stock equityCAPM Netflix common stock has a beta, b, of 0.8. The risk-free rate is 7%, and the market return is 12%.

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Cost of common stock equityCAPM Netflix common stock has a beta, b, of 0.8. The risk-free rate is 7%, and the market return is 12%. 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. a. The risk premium on Netflix common stock is %. (Round to one decimal place)

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