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Cost of common stock equityCAPM Netflix common stock has a beta, b, of 1.2. The risk-free rate is 9%, and the expected market return is

Cost of common stock equityCAPM Netflix common stock has a beta, b, of 1.2. The risk-free rate is 9%, and the expected market return is 14%.

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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