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[Cost of common stock equityCAPM]: Netflix common stock has a beta, b, of 0.6. The risk-free rate is 5%, and the market return is 8%.
[Cost of common stock equityCAPM]: Netflix common stock has a beta, b, of 0.6. The risk-free rate is 5%, and the market return is 8%.
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.
round all answers to one decimal place.
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