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What is the estimate for the cost of common stock using the bond yield over the common stock risk premium over bonds method? The risk-free
What is the estimate for the cost of common stock using the bond yield over the common stock risk premium over bonds method?
The risk-free rate of return is 4.7 percent, the stock market risk premium is 7.6 percent, and the risk premium for common stock over bonds is 3.9 percent. What is the required rate of return on a stock with a beta of 1.3 if the firm's bond yield (YTM) is 7.5 percent?
Enter your answer to 2 decimals, for example if the required return = 12.75% you would enter 12.75 Do not include the percentage sign.
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