P9-9 (similar to) Cost of common stock equity CAPM Netflix common stock has a beta, b, of 1.4. The risk-free rate is 7%,, and the market return is 12%. a. Determine the risk premium on Netflix common stock. b. Determine the required returm 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) Enter your answer in the answer box and then click Check Answer. 2 parts remaining Clear All