Cost of common stock

equityCAPM

Netflix common stock has a beta,

b,

of

0.7. The risk-free rate is 5%, and the expected market return is 13%.

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.

2...

Cost of preferred stockDetermine the cost for the following preferred stock.(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)

Par value	Sale price	Flotation cost	Annual dividend
$110.00	$119.90	$6.60	10%

Question content area bottom

Part 1

The cost of preferred stock is enter your response here%.

(Round to two decimal places.)

2.b