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Cost of common stock equity-CAPM Netflix common stock has a beta, b, of 0.7. The risk-free rate is 4%, and the market return is 12%.
Cost of common stock equity-CAPM Netflix common stock has a beta, b, of 0.7. The risk-free rate is 4%, 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) b. The required return that Netflix common stock should provide is [%. (Round to one decimal place) c. Netflix's cost of common stock equity using the CAPM is O%. (Round to onio decimal place)
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
