Cost of common stock

equityCAPM

Netflix common stock has a beta,

b,

of

1.5.

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.

Please Bold the answers