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eBook Problem Walk-Through Cost of Equity: CAPM Booher Book Stores has a beta of 1.3. The Vield on a 3-month T-ball is 3% and the

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eBook Problem Walk-Through Cost of Equity: CAPM Booher Book Stores has a beta of 1.3. The Vield on a 3-month T-ball is 3% and the yield on a 10-year T-bond is 6%. The market risk premium is 7%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places

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