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Cost of common stock equityCAPM Netflix common stock has a beta, b, of 1.7. The risk-free rate is 7%, and the market return is 15%.
Cost of common stock equityCAPM Netflix common stock has a beta, b, of 1.7. The risk-free rate is 7%, and the market return is 15%.
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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